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HomeMy WebLinkAboutReso 80-2025 (25-622)City of South San Francisco • City Council • Resolution: RES 80-2025 P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File Number: 25-622 Enactment Number: RES 80-2025 RESOLUTION AUTHORIZING THE TRANSFER OF $13,787,957 FROM THE SEWER CAPACITY CHARGE FUND (730) TO THE SEWER FUND (710) AND APPROVING BUDGET AMENDMENT NUMBER 25.057 WHEREAS, the City of South San Francisco adopted the 2017 Development Mitigation Fee Study prepared by Michael Baker International, which established the sewer capacity charge structure based on a cost allocation methodology; and WHEREAS, the study identified that 66% of the total sewer impact fees represent a buy -in cost to reimburse the City for existing infrastructure capacity that had been created to be used by new development that would be subject to the sewer capacity charge; and WHEREAS, since Fiscal Year 2017-18, the City has collected $20,890,845 in sewer capacity charges, with $13,787,957 representing the 66% buy -in share due to the Sewer Enterprise Fund (Fund 710); and WHEREAS, the Sewer Enterprise Fund has historically funded sewer infrastructure that benefits both existing users and new development; and WHEREAS, the City desires to reimburse the Sewer Enterprise Fund from the Sewer Capacity Charge Fund (Fund 730) to ensure proper allocation of collected fees in compliance with applicable laws and the City's adopted fee study; and WHEREAS, it is the intent of the City to ensure proper cost allocation between existing ratepayers and new development, and to use development impact fees in accordance with state law and adopted nexus studies. NOW, THEREFORE, BE IT RESOLVED, that the City Council authorizes the transfer of $13,787,957 from the Sewer Capacity Charge Fund (Fund 730) to the Sewer Enterprise Fund (Fund 710), representing the 66% buy -in share of sewer capacity charges collected since Fiscal Year 2017-18. BE IT FURTHER RESOLVED that the City Council approves Budget Amendment Number 25.057 to amend the FY 2024-25 budget and reflect the appropriate adjustments in fund balances in connection with this transfer. BE IT FURTHER RESOLVED, that the City Manager, or their designee, is hereby authorized to administratively allocate the buy -in portion, currently 66%, of all sewer capacity charge revenue to the Sewer Enterprise Fund (Fund 710) upon receipt, consistent with the cost allocation methodology set forth in the 2017 Development Mitigation Fee Study, and as may be updated in future adopted studies. City of South San Francisco File Number: 25-622 Enactment Number: RES 80-2025 BE IT FURTHER RESOLVED, that the City Manager, or their designee, is authorized to take all actions necessary to effectuate this transfer, including budget amendments, interfund transfers, and accounting adjustments, as needed, consistent with the intent of the associated Staff Report or this Resolution. At a meeting of the City Council on 6/25/2025, a motion was made by Vice Mayor Addiego, seconded by Councilmember Nagales, that this Resolution be approved. The motion passed. Yes: 5 Mayor Flores, Vice Mayor Addiego, Councilmember Nagales, Councilmember Coleman, and Councilmember Nicolas Attest by i � t �c osa Govea Acosta, City Clerk City of South San Francisco