REPORT TO COUNCIL
SUBJECT
Title
Actions on a Resolution Adopting the Updated Sanitary Sewer Outlet Charge - Conveyance Fee Report and List of Improvements, and a Resolution Accepting the Amended AB1600 Report on Development Impact Fees for Fiscal Year Ended June 30, 2021
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In 2007, a Conveyance Fee component of the Sanitary Sewer Outlet Charge was approved by City Council (Resolution 07-7415). The Conveyance Fee funds required capacity improvements to the sanitary sewer system due to intensification and densification of land uses permitted by the General Plan and associated development land use amendments. Updates to the fee were made in 2009 and 2010 through the following actions:
• Resolution 09-7643 approved in June 2009 updated the fee to include costs of bond issuance to fund and implement projects
• Resolution 10-7741 approved in June 2010 updated the fee with consideration of the following: a) resolution of other funding opportunities (i.e. redevelopment and stimulus funds); b) incorporation of latest land use information from the General Plan update finalized in 2010; and c) adjustments to the capacity project improvements listing resulting from a) and b).
The initial establishment of the Conveyance Fee was based upon projects identified in the 2007 Sanitary Sewer Capacity Assessment. This assessment accomplished the following key objectives: a) develop wastewater flow projections for the City’s collection area using up-to-date water use and land use information; b) develop a hydraulic model of the trunk sewer system; c) use the model to identify existing capacity deficiencies and future capacity requirements; and d) develop phased capital projects, including budget cost estimates, for implementing the required capacity improvements to the wastewater collection system. It is also important to note that the assessment fulfilled the requirement for a capacity evaluation and capacity assurance plan as required for all sewer system agencies overseen by the Regional Water Quality Control Board.
Another sewer capacity assessment was conducted in 2009 (an update to the 2007 assessment) that accounted for land use changes resulting from the in-progress General Plan Update which was finalized in 2010. In June 2010, recommended changes to the capacity project improvements listing and project budget cost estimates were approved through City Council Resolution 10-7741.
DISCUSSION
2016 Sanitary Sewer Master Plan Update
In 2015, the City initiated work on a comprehensive update to the prior capacity assessment work completed in 2007 and 2009. The analysis considered the latest information on water use and land use changes since 2009. The 2016 Sanitary Sewer Master Plan (SSMP) Update was completed by the City’s consultant, RMC Water and Environment, and issued in April 2016 (Attachment 1). As with prior reports, the SSMP recommended a phased capacity improvement project listing including budget cost estimates. Also, the hydraulic model update served as an important tool in the continuous evaluation of individual development proposals with respect to sanitary sewer capacity impacts and resulting development conditions of approval.
2022 Addendum to 2016 Sanitary Sewer Master Plan Update
In 2021, the City initiated work on an addendum to the 2016 SSMP Update to analyze two identified deficiencies and update the Tracy Drive Sewer Improvement project. The two identified deficiencies included one on the Calabazas Creek trunk, which was due to the 2021 discovery of existing sewer network conditions that were different than the hydraulic model and one on the Great America Parkway West trunk resulting from new development in the sewer tributary area. The Tracy Drive sewer project was to be revised to better balance downstream flow between the Homestead Road and Pomeroy Avenue intermediate trunk lines.
The extent of the Calabazas Creek trunk line deficiency was evaluated, and four alternatives were studied, resulting in three recommended alternatives carried forward to the capacity improvement project listing. Also, a solution to the Great America Parkway West trunk line deficiency was identified resulting in a recommended project.
The 2022 Addendum (Attachment 2) provides an update to the 2016 capacity improvement project listing resulting in a combined listing of the 2016 projects with the additional projects identified in the 2022 analysis.
Upcoming Work and Recommended Actions
A comprehensive update to the SSMP is planned to commence in late 2022 and be completed by early 2024. Similar to prior work, this assessment will update the hydraulic model with the latest water use and land use changes. Further analysis will aid in identifying any existing deficiencies and future anticipated deficiencies with a resulting capacity improvement project listing that includes budget cost estimates. After identifying the total project costs, a rate analysis will be performed to determine if the existing conveyance fee rate is appropriate for the needed improvements.
The attached Sanitary Sewer Outlet Charge - Conveyance Fee Report (Attachment 3) provides more detail on the history of the Conveyance Fee and supporting analysis work that is summarized in this memorandum.
It is recommended that the updated Conveyance Fee Report and the updated capacity improvement project listing contained herein be approved. This will allow for continued capacity improvement projects to move forward in parallel with the planned Master Plan Update work. Because the comprehensive update to the SSMP will be initiated in 2022, and the update will include a conveyance fee rate analysis, it is recommended that the current conveyance fee rate be held constant pending completion of the future rate analysis.
Amended AB1600 Report on Development Impact Fees and Recommended Actions
Attachment 5 provides the Amended AB1600 Report on Development Impact Fees for the fiscal year ended June 30, 2021. Staff has updated the AB1600 Report previously approved by the Council on February 22, 2022 to include the Sanitary Sewer Conveyance Fee. This section reflects the activity for the Sanitary Sewer Conveyance Fee from FY 2016-17 through FY 2020-21. This fee had initially been omitted from the report as the master planning efforts were underway.
This report is supplied pursuant to Government Code Section 66006(b). Staff has determined that the City does not have to refund any Sanitary Sewer Conveyance Fees as these fees have been programmed to fund capital projects. Therefore, staff is submitting the attached Resolution (Attachment 6) to accept the Amended AB1600 Report and make findings that there is a continuing need for unexpended balances of impact fees.
On July 29, 2022, the City posted notice and made copies of the Amended AB1600 Report available for public review in the City Clerk’s Office, the Finance Department, and online at www.Santaclaraca.gov/Finance. In addition, written notice of the time and place of the regularly scheduled City Council meeting on August 16, 2022, along with a copy of the Amended AB1600 Report were sent to interested parties as requested. More than 15 days will have elapsed as of the date of Council review since the report was made available to the public, as required by applicable state law.
ENVIRONMENTAL REVIEW
The Sanitary Sewer Master Plan updates and assessments mentioned in this report analyzed both existing conditions and future expected land uses based on the General Plan Phase III 2035 Scenario. Public Utilities, including wastewater systems, are addressed in the Final Environmental Impact Report (EIR) for the 2010-2035 General Plan. The EIR considers the environmental impacts of increased land use densification and the resulting need to increase sanitary sewer capacity. For any specific project from the capacity improvement project listing that moves from the programming stage to construction, the project will be evaluated in accordance with the California Environmental Quality Act as part of the approval process.
FISCAL IMPACT
There is no fiscal impact other than staff time. The current Conveyance Fee will continue to be assessed at the current rate to fund capacity improvement projects.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt a Resolution approving the updated Sanitary Sewer Outlet Charge - Conveyance Fee Report and List of Improvements; and
2. Adopt a Resolution accepting the Amended AB1600 Report on Development Impact Fees for fiscal year ended June 30, 2021.
Staff
Reviewed by: Kenn Lee, Director of Finance
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. 2016 Sanitary Sewer Master Plan Update
2. 2022 Addendum to 2016 Sanitary Sewer Master Plan Update
3. Sanitary Sewer Outlet Charge - Conveyance Fee Report
4. Resolution for the Sanitary Sewer Outlet Charge - Conveyance Fee Report
5. Amended AB1600 Report on Development Impact Fees
6. Resolution Accepting the Amended AB1600 Report on Development Impact Fees