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Report regarding a resolution approving the report of stormwater management service charges, approving the stormwater management service charges for fiscal year 2026-27, and directing the collection of stormwater management service charges on the official tax assessment roll. (Andrew Wemmer, Environmental Compliance Supervisor and Brian Schumacker, Plant Superintendent).
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RECOMMENDATION
Recommendation
Staff recommends that the City Council conduct a public hearing and adopt a resolution approving the stormwater management service charges for fiscal year 2026-27; and direct the stormwater management fee collection onto the official tax assessment roll.
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BACKGROUND/DISCUSSION
The Environmental Protection Agency administers regulations that mandate local governments to control and reduce stormwater pollution runoff. The Clean Water Act of 1977 and the Water Quality Act of 1987 give regulatory authority to the State of California to enforce stormwater mandates. The framework for regulating stormwater discharge exists through a National Pollution Discharge Elimination System (NPDES) Permit. The California State Water Resources Control Board (SWRCB) implements and enforces NPDES Permits.
The NPDES Municipal Regional Permit (MRP) specifically regulates stormwater compliance in local municipalities. The SWRCB renewed the MRP on May 11, 2022. This permit contains 27 provisions, including:
• Municipal operations
• New development and redevelopment
• Industrial and commercial site control
• Illicit discharge detection and elimination
• Construction site control
• Public information and outreach
• Water quality monitoring
• Pesticides toxicity control
• Trash load reduction
• Mercury controls
• Polychlorinated biphenyls (PCBs) controls
• Copper controls
• Control of other chemical compounds
San Mateo Countywide Water Pollution Prevention Program (SMCWPPP) is a countywide program that works with cities to help them meet the MRP. Fiscal year (FY) 2026-27 marks the 35th year of South San Francisco’s participation in this program.
Water Pollution Prevention Program
Examples of general program responsibilities include:
- Coordinate the overall program efforts;
- Submit annual reports to the Regional Water Quality Control Board;
- Develop and sponsor training workshops; and
- Develop educational/informational materials for dissemination within jurisdictions.
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- Examples of City-specific program activities include:
- Street sweeping, storm drain cleaning, and other maintenance-related activities that may increase stormwater quality;
- Minimizing or eliminating potential stormwater pollution sources at commercial and industrial facilities through inspection and educational outreach activities, and effectively prohibit illicit discharges (such as oil, paint, or soapy wash water) to the City’s storm drain systems; and
- Educating the public about the differences between the sanitary sewer and storm drain systems and the causes of stormwater pollution.
Accomplishments of the South San Francisco FY 2025-26 Water Pollution Prevention Program to date include:
• Spill or illicit discharge complaint response
• Erosion control (construction) inspections
• Food, auto repair, and industrial facility inspections
• Building and construction plans input and review
• Large Colma Creek cleanups at Lower Colma Creek
• Public events outreach and educational sessions
Stormwater Fee Structure History
On July 19, 1993, the City Council adopted a stormwater fee that, at the time, represented an equitable distribution of stormwater regulation costs. South San Francisco established the fees in 1993 based on the size and use of the parcel and the estimated amount of stormwater runoff generated. Over the last 30 years, the MRP compliance requirements have increased while the funding mechanisms for stormwater management have remained fixed. Most local agencies with stormwater management responsibilities face rising costs with static funding sources. Due to many legislative constraints at the statewide level, local municipalities offset stormwater programs through the General Fund.
The current fee for a single-family residential property average $8.72 per year, or $0.73 per month, and has remained unchanged for 30 years. The proposed program budget for the fiscal year 2026-27 is projected at $1,210,045. However, current stormwater fees will only bring in $435,124 in revenue. General Fund revenues of $774,921 supplement the delta.
Potential Fee Amendment Process
In October 2017, the State Assembly passed Senate Bill (SB) 231. Previously, Proposition 218 did not define stormwater as an eligible fee for the 218 processes. Therefore, approval of new or increased charges for stormwater management services would have required general ballot voter approval, which is why most municipalities have not increased their stormwater fees. The Legislature’s intention with SB 231 is for stormwater fee increases to follow the same path through Public Notice and protest hearings, much like the sanitary sewer service charges. Taxpayer groups have promised to challenge any stormwater fees increased utilizing the process for sanitary sewer charges, as authorized by SB 231. The courts have not yet ruled on the validity of SB 231. As a result, very few (if any) municipalities have successfully implemented this process to increase stormwater fees.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
The Water Quality Control Plant (WQCP) Division promotes public health and environmental stewardship. Continuing to fund the Storm Water Program helps ensure clean stormwater runoff to Colma Creek and the San Francisco Bay. The stormwater program positively influences the quality of life for South San Francisco residents by protecting public health and safety.
FISCAL IMPACT
Expected revenue from the fiscal year 2026-27 stormwater program service fees is approximately $435,124. The proposed budget for FY 2026-27 is projected at $1,210,045. Under the City’s Municipal Code requirements, the Director of Finance has filed with the City Clerk a report containing a summary of the annual charges of real property, computed in conformity with the schedule of charges.
The City implemented a Stormwater Inspection Fee beginning FY 2023-24 to help cover the costs and resources required under the MRP’s inspection program. To date, these fees have resulted in over $25,000 in revenue during FY 2025-26.
Additionally, the City Clerk published the public hearing notices per the applicable Municipal Code requirements. Following adoption of the resolution approving the report of stormwater management service charges for FY 2026-27, the City Clerk will file a copy of the report with the county auditor to collect the stormwater management service charges on the official tax assessment roll.
CONCLUSION
Staff recommends that the City Council conduct a public hearing and, by at least a four-fifths vote, adopt a resolution approving the stormwater management service charges for FY 2026-27; and direct the stormwater management fee collection onto the official tax assessment roll.
ASSOCIATED DOCUMENTS
1. FY 2026-27 Stormwater Charge City Council Presentation