Storm Water Management Oversight Committee - April 13, 2026

Committee reviews 3% fee increase as capital costs remain uncertain

The Storm Water Management Oversight Committee reviewed a proposed fiscal year 2027 budget that would raise the monthly stormwater charge by 3%, or 53 cents, from $17.61 to $18.14 per equivalent residential unit. The committee took no formal action on the budget review or fee-rate item. Staff said the Finance Committee had previously approved the rate increase, though no vote details were provided, and broader Finance Committee budget hearings are scheduled for May 5 and 6.

The proposal projects $9.714 million in revenue and $9.776 million in expenses. Planned capital spending includes $1.405 million for storm-drain system replacement and rehabilitation, $2.983 million for ballot-identified projects, $2.365 million for Center Drive capacity upgrades and $1.030 million for green stormwater infrastructure. Staff said unspent one-time capital funds from fiscal 2026 would be carried forward without expanding project budgets or drawing further on reserves.

The longer-term picture is less settled. Staff said six of the 13 ballot-measure projects appear in the five-year capital plan, while five projects remain to be programmed. The estimates underlying the remaining projects date to the 2015 Storm Drain Master Plan and may not reflect current construction costs. The projection also allocates $300,000 annually for recurring rehabilitation from fiscal 2028 through 2031, while staff said the ballot measure permits closer to $600,000 in those years.

That uncertainty shaped the committee's discussion of a memorandum to the Finance Committee. Staff intentionally removed a statement from the previous year that available funding appeared sufficient for all 13 projects. Members discussed language acknowledging continued evaluation of revenue, expenses, assumptions and design-related costs while making clear that the concern did not change the fiscal 2027 budget. A motion was made to revise the memorandum and finalize it by email, but the meeting record does not establish whether it passed or provide a vote count. Staff said it would circulate a revised draft for committee review.

Microtunneling finishes while Hamilton project absorbs construction risks

Staff reported that the microtunneling portion of the Corporation Way and East and West Bayshore capacity work was complete, with cleanup and demobilization underway. The installation took about four weeks; staff said an open-cut approach would have taken six to seven months and created additional groundwater, traffic-control, shoring and utility challenges. Daily monitoring found no settlement beyond the one-inch criterion near a sewer-line crossing.

Four stormwater projects were under construction, with a fifth expected to begin soon, and the projects under construction were slated for completion by the end of 2026. Work on the Hamilton Avenue capacity upgrades began Jan. 5 and includes 48-inch pipe and 72-inch manholes. Staff reported groundwater, wet-season conditions, unmarked utilities and brittle sewer laterals as construction complications. Related utility work was being covered by the contract's built-in 10% contingency, but staff said costs could increase if that contingency is exhausted.

The Alester Avenue rehabilitation project was bid separately after alternate bids through the Hamilton project were considered too high. Staff said the bid closed April 2 and a notice of intent was issued April 5. The award was being prepared for a City Council agenda, with construction planned while school is out of session. Design work on the Center Drive and Lewis Road projects is expected to resume after the current projects are completed.

City reaches trash-reduction goal as Juana Briones design begins

Palo Alto achieved its 100% trash-reduction goal, notified the Water Board and received acceptance of its compliance work, staff reported. The oversight committee received the update without taking action.

Design has also begun for a proposed green stormwater infrastructure project in a portion of Juana Briones Park. The project would use a new underground pipe to divert runoff from an existing storm drain into engineered soils and infiltration features, allowing treatment of a larger drainage area that is predominantly residential and partly school property. Staff put the design effort at about $800,000, funded roughly equally by an EPA grant and the city; agenda materials identify the grant as $400,000. Construction funding has not been approved.

A 10% design is targeted for June, with public meetings tentatively planned for June and November. Staff expects to bring public feedback and the proposal to the Parks and Recreation Commission before seeking a parks improvement ordinance from the City Council. Design and construction documents are targeted for completion by fall 2027, followed by efforts to obtain construction funding.

Recruitment draws no applicants for October vacancies

Staff reported that recruitment was open for October committee vacancies but had drawn no applications. The committee took no action and plans to meet again before Oct. 31. Staff will recirculate the application link to committee members as recruitment continues.

Members discussed whether term limits allow service beyond two terms or a temporary extension if recruitment remains unsuccessful. The meeting record contains conflicting interpretations and no definitive conclusion. Staff plans to consult the clerk's office about the applicable rules and possible options.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet