Agenda Item Wording:
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Presentation on the Status of the Storm and Sewer Master Plan Updates and Introduction to the Nexus Study.
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Deadline for Action: None.
Submitting Department: Administration - CIP Engineering
Contact Name and Phone Number:
Katherine Woodhull-Fuget, Assistant Engineer, Katherine,Woodhull-Fuget@visalia.city, (559) 713-4447
Frank Senteno, City Engineer, Frank.Senteno@visalia.city, (559)-713-4331
Nick Mascia, Assistant City Manager, Nick.Mascia@visalia.city, (559) 713-4323
Department Recommendation:
Staff recommends the City Council receive a presentation and status update on the Storm and Sewer Master Plans.
Background Discussion:
The City of Visalia entered a contract with Carollo Engineers, Inc to update the City’s public facility master plans for storm sewer and sanitary sewer collection in September 2018. Please note throughout this report and the presentation ‘storm sewer’, ‘storm water’, or ‘storm drain’ are interchangeable. In an effort to not confuse sanitary sewer with these three, staff will reference the sanitary sewer as ‘sewer’ and storm sewer as ‘storm water’. However, please note when speaking about the specific funds the nomenclature of 'storm sewer’ will be used.
The main purpose of updating these master plans is to adequately size storm water and sewer system facilities for the future growth in accordance with the 2014 General Plan update. The 2014 General Plan update contains new policies and changes to land use types and land use densities that have a direct impact on the sizing of these facilities. The current master plans were updated in 1994 based on the 1990 General Plan. These master plan updates should track on the same cycle of updates that occur to the General Plan. These master plans provide necessary guidance to City staff for capital projects planning and to private developers for knowing the City’s requirements for storm water and sewer system facilities. Additionally, these master plans will include nexus studies that will provide an equitable distribution of development costs through updated development impacts fees for storm water and sanitary sewer collection. The storm nexus will also provide documentation on recommended updates to the storm sewer service charges for use in the Proposition 218 process. See below for additional information regarding Storm sewer service charges
Development Impact Fees
Under the California Mitigation Fee Act (AB 1600) cities and counties have the authority to implement development impact fees (DIF). DIFs allow cities to collect fees from new development projects to fund improvements that address those projects’ impacts to the City’s infrastructure. To impose DIFs, a jurisdiction must prepare a study showing that reasonable connection (nexus) exists between the impacts caused by new development and the capital improvements needed to address those impacts. This study must also calculate the proportional fee that can be assessed on each project that pays for that project’s share of the impact.
While DIFs are an important revenue source for capital infrastructure, there are several limits and restrictions on how these fees are spent, which means that DIFs alone cannot finance the City’s infrastructure needs. DIFs are considered restricted funds and are collected outside the City’s general fund. They are only eligible to pay for the initial capital costs of new infrastructure specifically identified in the nexus study and cannot be used for the operations or maintenance of that infrastructure. Additionally, DIF funds can only be used to address the proportional impact that new development has on infrastructure. They cannot be used to pay for an existing deficiency or shortfall in infrastructure spending. This means that the City must rely on other capital funding to build required improvements in combination with DIFs. Finally, impact fees are collected proportionally over time as new development occurs. This means that projects funded with DIFs are generally long-term projects that must be financed over time as development occurs and revenues are collected and set aside to construct improvements.
The City’s current storm and sewer impact fees are based on the 1994 master plans and nexus studies. These impact fees are adjusted annually by the Engineering News Record Construction Cost Index (ENRCCI). Impact fee funds are usable only for projects identified in the 1994 maser plans.
Visalia has grown significantly in the 28 years since the master plans were last updated, and some of the City’s infrastructure needs have shifted. For sewer, water conservation efforts and water efficiency innovations have altered the projected sewer demand. For storm, changes in water quality requirements from the State Water Resources Control Board has created a need to avoid new direct discharges into waterways which significantly changes the storm master plan. The updates to the storm and sewer master plans identify new projects based on the current infrastructure and projected needs. This new nexus study will update the impact fees to reflect the new identified projects.
Storm Service Charges
The City Council resolutions that implemented the 1994 Storm Water Master Plan Update included the funding program for capital improvement costs. This funding program established a revenue split of 75% assigned to storm drainage impact fees on new development and 25% assigned to a storm service charge on existing development. This storm service charge is charged monthly and has been broken down into the following components and fee amounts:
|
Fee |
Amount |
Updated |
Fund |
|
Master Plan Improvements |
$0.84 per account per month |
Last increased 2004 |
221 |
|
Correct Existing Deficiencies |
$0.67 per account per month |
Last increased 2004 |
222 |
|
Waterway Acquisition/Maintenance |
$0.51 per account per month |
Increased by CPI FY18-19 |
251 |
|
Kaweah Lake Enlargement Project and Local Storm Water Maintenance |
$0.59 per account per month |
Increased by CPI annually |
223 |
|
Operations & Maintenance |
$0.24 per 1,000 sq. ft. of parcel size |
Last increased 2004 |
481 |
Cost of administering the City’s Storm water Quality Management Program (MS4 Program) will be included as part of the Operations & Maintenance fee component. The adoption of the storm service charges did not include an inflationary adjustment. The passage of Proposition 218 in 1996 has restricted the City’s ability to adjust the service charges. The Master Plan Improvements, Correcting Existing Deficiencies, and Operations & Maintenance service charges were last updated by the adoption of a four-year rate increase in 2001 (resulting in a yearly increase until 2004) through the Prop 218 process.
Fiscal Impact:
This presentation will introduce the Nexus Study tied to the Update of the Storm and Sewer Facility Master Plans. The Nexus Study will result in adjustments to the impact fees and service charges that contribute to the following funds:
• 221 Storm Sewer Construction
• 222 Storm Sewer Deficiency
• 231 Wastewater Trunkline
• 481 Storm Sewer Maintenance
The Nexus Study will not be modifying funds 251 Waterway Acquisition/Maintenance, 223 Kaweah Lake Enlargement, or 431 Wastewater Treatment Plant.
Next Steps
Staff will continue working with the Consultant to conduct the Nexus Study as described in the presentation, with the intent to return to Council to present the proposed impact fees and service charges in Spring 2023.
Prior Council Action:
December 5th, 2022
Authorize the City Manager to approve a contract amendment for Carollo Engineers, Inc. in the amount of $97,070 for the Update to the Storm water Master Plan (Project Number 2450-72000/CP9067-999) and an additional appropriation of $100,000 from Storm Sewer Construction Fund 221.
August 16, 2021
Authorize the City Manager to approve a contract amendment for Carollo Engineers, Inc. in the amount of $132,543 for the Update to the Storm water Master Plan (Project Number 2450-72000/CP9067-999); and authorize the appropriation of $140,00 from Storm Sewer Construction Fund (221) to CP9067.
September 4, 2018
Council authorized the City Manager to execute an agreement for RFP 17-18-29 to Update the City’s Public Facility Master Plans for Storm Water and Sanitary Sewer Collection with Carollo Engineers, Inc. in the amounts of $326,700 (CP9067) and $279,200 (CP0015), authorized the appropriation of $155,285 from Fund 221 to CP9067, and authorized the appropriation of $12,000 from Fund 231 to CP0015.
June 6, 2016
Work session to review key topics related to the City’s sewer system and storm water master plans and receive Council feedback for incorporation into the scope of work and authorize the advertising of a Request for Proposals (RFP) to update these master plans.
July 16, 2001
Adoption of a four-year rate increase for the Storm Sewer Enterprise. Resolution 2001-49 required.
Alternatives:
None.
Recommended Motion (and Alternative Motions if expected):
recommendation
No action, informational only.
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Environmental Assessment Status:
A Programmatic Environmental Impact Report will be required prior to the adoption of the public facility master plans. Staff intend to issue a new RFP for the development of the storm and sewer master plan programmatic EIRs.
CEQA Review:
See Environmental Assessment Status above.
Attachments:
1. Nexus Study Presentation