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City of San Leandro <br />City Council <br />Meeting Date: May 1, 2023 <br />Agenda Number: 10.c. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 23-160 <br />File Type: Staff Report <br />Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services <br />Agreement with HF&H Consultants, LLC for Implementation of a Proposition 218 Voting Process for <br />Proposed Stormwater Rates for $203,350 Budgeted in Account 598-58-006 in Fiscal Year 2024 <br />COUNCIL PRIORITY <br />·Fiscal Sustainability <br />SUMMARY <br />At the April 3, 2023 City Council meeting, staff provided a presentation on the status of the <br />Stormwater Fund. At the conclusion of the presentation, the City Council directed staff to proceed <br />with finalizing a new stormwater rates study and to proceed with a Proposition 218 voting <br />process. Given the legal framework of Proposition 218 and the Proposition 218 Omnibus <br />Implementation Act, staff is desirous of engaging HF&H Consultants, LLC (HF&H) as qualified <br />experts in the field of conducting this process. <br />RECOMMENDATIONS <br />Staff recommends that the City Council adopt a resolution to approve and authorize the City <br />Manager to execute a Consulting Services Agreement with HF&H for implementation of a <br />Proposition 218 voting process for $203,350 that is proposed in Account 598-58-006 for fiscal <br />year 2024. <br />BACKGROUND <br />When established in 1993, the Stormwater Fund was intended to provide a funding source for <br />San Leandro’s costs to comply with the provisions of the Stormwater Program, supporting <br />activities related to stormwater pollution control, stormwater system maintenance, and <br />improvement and repair of the infrastructure. Additional activities paid for by the fund and <br />required by the National Pollutant Discharge Elimination System (NPDES) Permit include public <br />information/education, street sweeping, elimination of illicit discharges and connections, new <br />development and construction site controls, and implementation of an inspection program for <br />industrial and commercial properties. <br />Unfortunately, the Fund was established without an inflation factor. In the intervening years, in <br />addition to increased labor costs, the State has added new unfunded mandates to the Program, <br />most notably the requirement for installation of trash capture devices throughout the City. Since <br />1994, there have been nine years when the General Fund was required to contribute to the Fund <br />in order to make it whole. <br />Page 1 City of San Leandro Printed on 4/26/2023