JOINT EAST PALO ALTO &

EAST PALO ALTO SANITARY DISTRICT

INTERGOVERNMENTAL COMMITTEE
Staff Report
DATE: September 14, 2020
TO: Intergovernmental Committee
FROM: Akintunde Okupe, General Manager EPASD
Amy Chen, Community and Economic Development Director, City of EPA
Kamal Fallaha, Public Works Director, City of East Palo Alto
SUBJECT: Intergovernmental Committee Meeting on September 14, 2020

Recommendation

1. Receive the updates on the information requests from the Intergovernmental Committee
meeting held on August 24, 2020, and
2. Direct City and EPASD staff to prepare necessary information to begin discussing
financial plan and fair share methodology to upgrade the wastewater infrastructure for the
City approved development projects at the next Intergovernmental Committee meeting
currently scheduled for September 14, 2020.

Background

Pursuant to the intergovernmental meeting that was held on August 24, 2020, it became
imperative to develop a strategy aimed at developing a financial plan to upgrade the
existing sewer infrastructures to serve the most recently approved City General Plan. In
consideration of this, the committee agreed to bring the items listed below back for
discussion on September 14, 2020 Intergovernmental Meeting.

TABLE 1

Direction
Responsibility

Provide overview of City’s Development Review process City of EPA

Produce a map that shows the General Plan development City of EPA (lead)
footprints overlaid with EPASD’s Capital Plan – EPASD to EPASD to provide
identify where the system lacks capacity information
Overview of best practices on how impact fees should be
Done on 08/24/20
established and administered
Provide definitions and proposal of fair share for EPASD
EPASD
improvements
The purpose of this staff report is: 1) to provide the Committee with specific information on
items that staff were directed to pursue, and 2) to provide the Committee with an update
and estimated timeline for addressing outstanding items.

Analysis

Table 2 below provides the Committee with an update on the items requested during the
meeting on August 24, 2020:

TABLE 2

Status
Direction

Provide overview of City’s Development Review process Chart has been revised

Produce a map that shows the General Plan development

To be presented on
footprint overlaid with EPASD’s Capital Plan; EPASD to
September 14.
identify where the system lacks capacity
Overview of best practices on how impact fees should be
.As discussed below
established and administered
To be presented on
Capacity fees update
September 14.

As depicted in Table 2, staff will be prepared to provide the Committee with two updates
during the meeting scheduled for September 14, 2020. Those items are: 1) Produce a map
that shows the General Plan development footprint overlaid with EPASD’s Capital Plan;
EPASD to identify where the system lacks capacity; 2) customary best practices related to
how impact fees should be established and administered; and 3) Provide definitions and
proposal for fair share for EPASD improvements.

Overview of Best Practices for Establishing/ Administering Impact Fees

The District’s capacity charges will be calculated using three standards methods – buy-in,
incremental, and total cost attribution. These are standard methodologies that are used
throughout the utility industry and are discussed in a number of publications regarding the
development of capacity fees, one of which is the American Water Works Association’s
Manual M1, Principles of Water Rates, Fees, and Charges. Other publications that cover
capacity charges include charges George A. Raftelis, Comprehensive Guide to Water and
Wastewater Finance and Pricing, and Arthur C. Nelson, System Development Charges for
Water, Wastewater, and Stormwater Facilities.

 Buy-in Method

The buy-in methodology was used in the previous 2018 Facility Capacity Charge (FCC)
Study, this capacity study did not take into consideration the infrastructural upgrade
necessary to serve new developments in the most recently approved City General Plan.
The system buy-in concept is based on the premise that new customers benefit from the
prior investment in system facilities made by existing customers. Existing customers’
investment in the system was through their payment of FCCs, rates and charges, and
property taxes over the years which were used to purchase and maintain the system
assets. New customers share in the cost of past investments in District facilities which
benefit new users. The funds are used for capital projects so the District can keep rates
low. The buy-in portion pays for the future capital costs, including improvement and
replacement projects to preserve the existing system (not day-to-day operating costs). In
turn, the District does not charge ratepayers for these projects.

. This methodology is applicable in areas where the capacity exists.

 Incremental Cost Method

This method is based on the premise that new connections to the water and wastewater
systems should be responsible for those costs related to the next increment of system
capacity required to serve them. The goal of this method is to minimize or eliminate the
need to raise rates in order to provide for system expansion. Consequently, new
customers pay fully for the additional facilities without imposing a burden on existing
customers. This approach is applicable in areas where the capacity does not exist.

 Total Cost Attribution Method

An alternative methodology that blends the system buy-in and the incremental facilities
approaches is also commonly used. The total cost attribution method considers both the
replacement of existing facilities and planned expansion in the costs basis. This method is
used when significant infrastructure is already in place, but considerably more
infrastructure is required.

The conditions of the existing sewer pipes vary location by location. The conditions can be
categorized as listed below:

a) Overcapacity: In this instance, the pipe line is flowing with the hydraulic grade line
(HGL) above the pipe under peak wet weather condition.
b) At capacity: The pipe line is flowing with the HGL at the crown of the pipe during
peak wet weather condition.
c) Under capacity: The pipe line is flowing with the HGL below the crown of the pipe
during peak wet weather condition.

Each project will be evaluated in order to determine the appropriate method applicable.
The following will be considered in the evaluation.

a) Flow path
b) Capacity of existing pipes in the flow path
c) Age of the pipe
d) Structural condition of the existing pipe considering engineering properties.
e) Salvage value of the existing pipe
f) Lost opportunity cost of capital using Fisher’s Seperation

Attachments

1- Overview of the City’s Development Review process (Revised)

2- EPASD FPR Guidelines
3- Figure 1, Revised 1999 General Plan Changes
4- Figure 2, Revised 2035 General Plan Changes
 EAST PALO ALTO SANITARY DISTRICT

ENGINEERING FACILITY PLAN REPORT (FPR) GUIDELINES

PURPOSE
The District requires the submittal of an engineering Facility Plan Report (FPR) for subdivisions,
commercial projects and industrial developments. The purpose of the report is to establish an
understanding between the developer and the District on what system improvements the developer
must construct prior to receiving service. This will help avoid misunderstandings and costly
revisions in the plan review process, and will help the developer determine the costs that will be
incurred for water and wastewater service. For most development projects, the FPR includes a
detailed analysis of all proposed water, sewer and recycled water facilities.

PROCEDURE
1. The developer's engineer will submit a packet containing a completed EPASD FPR Transmittal
Form (template attached), two copies of a Draft FPR, an additional electronic copy (pdf format) of
the report on CD, and the required deposit to an EPASD Development Services Section
representative. For the current FPR deposit amount, please contact EPASD at 650-325-9021 or
services@epasd.com
All FPRs must be bound and conform to the outline describe in the FPR CONTENT section of this
document. If the project is to be constructed in phases, the number of parcels and the number of
EDUs for each phase must be indicated in the FPR.
2. An initial screening for completeness will be conducted by the District Engineer. If the report is
found to be unacceptable because it is not substantially complete, it will be returned to the
developer’s engineer without a review.
3. Complete FPRs will be reviewed by the District Engineer within approximately six weeks and
returned with comments, if necessary. If there are no comments, the Final FPR will be approved
and returned to the engineer along with a review letter. The FPR must be approved prior to the first
submittal of facility improvement plans for District review. Any re-submittal of an FPR must contain
two hardcopies and one .pdf electronic copy of the revised report and also include a copy of the
previous review letter(s) in the FPR appendix.
4. After approval of the FPR, the developer’s engineer may submit the facility improvement plans
for review. If significant changes are required to the improvement plans during the review process,
which affect the Final FPR, such changes must be reflected in an addendum to the Final FPR.
Any questions regarding FPRs or facility improvement plan reviews should be directed to the
District’s District Engineer.
EXPIRATION
The approved FPR is valid for two years from the date of approval.
FPR CONTENT
The complexity of the report will depend upon the size of the project, the number of phases and the
extent of improvements that are required. The report must conform to the following outline. All
FPR's will be bound and, at a minimum, include:

Section I – General
  Completed EPASD FPR Transmittal Form (A hardcopy is attached, and electronic copies
are available on request. Please use this form as a master for future transmittals.)
 Cover page containing the project name; the name, address and telephone number of the
engineer and owner/developer; the date of submittal and the Assessor’s Parcel Number(s)
 Introduction
 Background including:
a- Statement of whether or not the property is within the District’s service area boundary
b- Existing County zoning designation(s)
c- Identification of the CEQA document prepared for the project and a statement
regarding whether the entire project, including offsite water and/or sewer lines, are
addressed
 Project description
 Vicinity map
 Project phasing (if applicable)
 A general project boundary map, showing adjacent developments and their existing or
proposed EDU’s
 Description of adjacent developments impacting or having the potential to impact this
project
 Typical street cross section showing all utilities and separations

Section II – Water
 Description of water demands based upon the equivalent dwelling unit (EDU) concept and
maximum demand criteria as provided in the Design Standards

Section III – Sewer

 Description of average dry weather flow (ADWF) sewage generation, based upon the
equivalent dwelling unit (EDU) concept; and peak wet weather flow (PWWF) sewage
generation, based upon criteria as provided in the Design Standards

APPENDIX
 Copy of the tentative map (if applicable)
 Copy of pertinent calculations and hydraulic modeling analysis
Sewer exhibits
 EAST PALO ALTO SANITARY DISTRICT

FACILITY PLAN REPORT (FPR) TRANSMITTAL FORM

Submittal Requirements: Two (2) copies of Facility Plan Report (FPR) and one (1) electronic copy in pdf
format, payment of the applicable deposit, and this completed transmittal form.
Project Name: __________________________________________________________________________
Contact Person: _________________________________________________________________________
Address: _______________________________________________________________________________
Telephone Number: _____________________________ FAX Number: _____________________________
1. Assessor's Parcel No(s): __________________________________________________________________
2. Location: ______________________________________________________________________________
3. This development will be constructed in _____________ phases.
4. The property requires Annexation to EID ______Yes, ______ No.
5. The total acreage of the development is ________________ acres.
6. The number of parcels proposed is _________________________.
7. The number of sewer EDU’s requested is __________________________.
8. The estimated average dry weather sewer flow is ____________ gpm.
9. The estimated peak wet weather sewer flow is ____________ gpm.
10. The engineer's cost estimates for all facilities to be built is attached ___Yes, ___ No.
11. Are any lift stations, pump stations or water tanks proposed? If so provide the following for each:
Latitude: _____________ longitude: _____________ elevation: _____________

Exceptions: ____________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

FPR submitted by: Final FPR approved by:

___________________________________ ________________________________________
Developer’s Engineer District Engineer
RCE# _______________________________ RCE#____________________________________
Date: _______________________________ Date: ___________________________________
 EAST PALO ALTO SANITARY DISTRICT

WILL SERVE LETTER REQUEST

In order to obtain a Facility Improvement Letter, please complete this form, submit a letter from the appropriate Fire
Protection District which states the fire flow requirements for your proposed project, and submit a check for the applicable
fee payable to East Palo Alto Sanitary District. Please also provide a copy of your tentative parcel map, or site plan if
available. Contact EPASD at (650) 325-9021 or service@epasd.com for the current fee amount.
Facility Improvement Letters are written in order of receipt of request and take approximately 6 to 8 weeks to prepare.
1. Owner’s Name and Address: (To whom the letter will be addressed and sent to.)
____________________________________ Contact Person ________________________________________
_____________________________________ Phone Number_________________________________________
_____________________________________ E-mail address _________________________________________
Send Copy of Letter to: (Name and Address) _______________________________________________________
_____________________________________________________________________________________________

2. Has a Will serve Letter been previously issued?

If yes, indicate the date of issuance_________________________________________________________________

3. Project Information:
Project Name ______________________________________ Projected No. of Lots _________________________
Description ___________________________________________________________________________________
San Mateo County Project Number_________________________________________________________________
4. Site Information:
Assessor’s Parcel Number(s) _____________________________________________________________________
Current Zoning ___________________ Proposed Zoning ________________ Total Acreage ___________________
County General Plan/ Land Use Designation
Has San Mateo County or the City of East Palo Alto put a deadline for staff review associated with this request?
 NO  YES If yes, indicate date ______________________________________
Services being requested: Indicate the type of service and wastewater service(s) required for the project.
Type of No. of No. of Type of No. of No. of
Service Water Wastewater Service Water Wastewater

 Single Family _________ ___________  Industrial _________ ___________

 Apartments _________ ___________  Agricultural _________ ___________
 Condominium _________ ___________
 Townhouses _________ ___________
 Duplexes _________ ___________
 Commercial _________ ___________

FEES ARE SUBJECT TO CHANGE WITHOUT NOTICE

EPASD Use Only

Existing Water/Sewer:
Account: ___________________ Water EDUs: ________ Sewer EDUs: ________
Account: ___________________ Water EDUs: ________ Sewer EDUs: ________

Uninstalled Services:
Account: ___________________ Water EDUs: ________ Sewer EDUs: ________
Account: ___________________ Water EDUs: ________ Sewer EDUs: ________

Total FCCs Required for Project?

Water EDUs: ________ Sewer EDUs: ________

Comments:
________________________________________________________________________________________________
________________________________________________________________________________________________
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