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City of San Leandro <br />Meeting Date: March 20, 2017 <br />Staff Report <br />Agenda Section:File Number:17-115 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for Resolution and Ordinance Establishing a Wastewater Fee <br />Structure to Comply with New Accessory Dwelling Unit State Law and Zoning <br />Code Changes <br />SUMMARY AND RECOMMENDATIONS <br />To comply with requirements imposed by new California Accessory Dwelling Unit (ADU) laws, <br />the Water Pollution Control Plant needs to establish new definitions and fee structures to <br />ensure equitable assessment of wastewater fees and charges. Staff recommends that the <br />City Council: <br />o Approve a Resolution to amend San Leandro Administrative Code, Title 12, <br />Chapter 5, Uniform Wastewater Discharge Regulations; and <br />o Adopt an Ordinance to amend San Leandro Municipal Code, Title 3, Chapter 14, <br />Uniform Wastewater Discharge Regulations, Article 2, Definitions. <br />BACKGROUND <br />The California Legislature recently amended State law to declare that ADUs in single family <br />and multifamily zones are essential to address the State housing shortage. Consequently, the <br />Legislature passed two new laws that took effect January 1, 2017 to lower barriers to <br />development of ADUs. Those barriers include existing sewer fees and charges. <br />It is Water Pollution Control Enterprise Fund policy to develop user charges that ensure equity <br />among ratepayers. In December 2007, the City entered into an agreement with Municipal <br />Financial Services for the development and evaluation of wastewater rates and capacity <br />charges. The evaluation’s objectives were to calculate wastewater rates and capacity charges <br />to adequately fund sewer utility operations, maintenance, capital replacement expenditures, <br />debt service obligations, keeping rates as competitive as possible, and maintaining a prudent <br />level of reserves. In addition, the City wanted to modify the complex methodology of the <br />previous rates. The Wastewater Rates Study and Wastewater Capacity Charges Study were <br />Page 1 City of San Leandro Printed on 3/13/2017 <br />80