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City of San Leandro Stormwater Fee Draft Report 1. Introduction HF&H Consultants, LLC Page 4 February 23, 2024 City is considering updating the Fee to provide a secure and predictable source of funding for the Stormwater system to meet Clean Water requirements and prevent flooding. This report details the system’s funding needs and the impact on rates based upon the SDMP. LEGAL REQUIREMENTS OF STORMWATER FEE This Report calculates the Stormwater Fee as a property-related fee. Property-related fees are subject to the requirements of Articles XIIIC and D of the State Constitution, which were approved by voters in 1996 through Proposition 218, as well as the Proposition 218 Omnibus Implementation Act (Government Code Sections 53750 – 53758). Any property-related fee must comply with requirements of Article XIIID, Section 6. These include the following: • Revenues derived from the fee shall not exceed the funds required to provide the property-re- lated service; • Revenues derived from the fee shall not be used for any purpose other than that for which the fee was imposed; • The amount of a fee upon any parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel; • No fee may be imposed for a service unless that service is actually used by, or immediately avail- able to, the owner of the property in question. Fees based on potential or future use of service are not permitted. Standby charges, whether characterized as charges or assessments, shall be classified as assessments and shall not be imposed without compliance with the assessment sec- tion of the code; and • No fee may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services where the service is available to the public at large in substan- tially the same manner as it is to the property owners. The procedural requirements of Proposition 218 require that new or increased property-related fees submit to a two-step process: 1) a 45-day public protest period culminating in a public hearing, and 2) a ballot proceeding whereby it must be approved by a 50% simple majority of property owners (or a two- thirds supermajority of registered voters) before new or increased fees could be authorized.