REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Approving a Policy to Prioritize Water and Sewer Services for Affordable Housing Developments
Report
BACKGROUND
Adopted in 2005, Senate Bill 1087 amended California Government Code Section 65589.7 to require all water and sewer providers to establish a written procedure to grant a priority for the provision of water and sewer services to proposed developments that include housing units affordable to lower-income households. Lower-income households are defined as households with incomes at or below 80 percent of area median income. Although State law has required the written policies and procedures since 2006, many jurisdictions and agencies, including Sunnyvale, have not adopted freestanding formal policies. Sunnyvale’s General Plan, Environmental Management Chapter, indicates that sufficient water supply and sewer collection and treatment systems are available for projected buildout. The availability of these utilities has been reaffirmed when new development potential has been approved (e.g. adoption of specific/area plans) and when long term infrastructure improvements are planned and implemented.
Compliance with Government Code Section 65589.7 is also a component of the City’s 2023-2031 Housing Element. Housing Element Program H42 calls for the City to establish procedures for granting priority water and sewer service to developments with lower-income units in compliance with State law.
EXISTING POLICY
General Plan
Chapter 5 - Housing
2023-2031 HOUSING ELEMENT
Policy H-6.2: Promote neighborhood vitality by providing adequate community facilities, infrastructure, landscaping and open space, parking, and public health and safety within new and existing neighborhoods.
Chapter 7 - Environmental Management (EM)
WATER SUPPLY
GOAL EM-1 ADEQUATE WATER SUPPLIES - Acquire and manage water supplies so that existing and future reasonable demands for water, as projected in the 20-year forecast, are reliably met.
WASTEWATER
GOAL EM-5 MINIMAL POLLUTION AND QUANTITY OF WASTEWATER - Ensure that the quantity and composition of wastewater generated in the City does not exceed the capabilities of the wastewater collection system and Water Pollution Control Plant.
GOAL EM-6 EFFECTIVE WASTEWATER COLLECTION SYSTEM - Continue to operate and maintain the wastewater collection system so that all sewage and industrial wastes generated within the City are collected and conveyed under safe and sanitary conditions to the Water Pollution Control Plant.
GOAL EM-7 EFFECTIVE WASTEWATER TREATMENT - Continue to operate and maintain the Water Pollution Control Plant, using cost effective methods, so that all sewage and industrial wastes generated within the City receive sufficient treatment to meet the effluent discharge and receiving water standards of regulatory agencies.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
Government Code Section 65589.7 sets forth specific requirements for utility providers to establish objective standards for prioritizing water and sewer services for proposed affordable housing developments. State law requires all agencies providing sewer or water services to adopt these policies and procedures by July 1, 2006, and once every five years thereafter.
As the primary provider of sewer and water services to Sunnyvale, the City is subject to the provisions of Government Code Section 65589.7. Staff has reviewed Government Code Section 65589.7 and prepared a draft policy in accordance with State law. The draft policy is included as Exhibit A of Attachment 1.
The proposed policy establishes that the City shall not deny or reduce services to proposed lower-income residential developments unless specific objective findings can be made. These findings are further detailed in the proposed policy and relate to water shortage emergencies, compliance orders issued by the State Department of Health Services, lack of treatment capacity, water quality control board prohibition, or failure of the applicant to agree to reasonable terms and conditions related to service provisions. It is important to note that the City has never denied water or sewer services to a new residential development.
Government Code Section 65589.7 also requires the City to deliver a copy of the City’s Housing Element to all public and private providers of water and sewer services. In addition to the City’s services, California Water Service also provides water service for approximately 1,000 homes in Sunnyvale. Staff has provided a copy of the 2023-2031 Housing Element to California Water Service to ensure full compliance with Government Code Section 65589.7 and the implementation of Housing Element Program H42. California Water Service also serves a small number of non-residential properties, most of which are not zoned for housing.
FISCAL IMPACT
There is no fiscal impact associated with this report.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
STAFF RECOMMENDATION
Recommendation
Adopt a Resolution approving a policy to prioritize Water and Sewer Services for Affordable Housing Developments (Attachment 1 to the report).
JUSTIFICATION FOR RECOMMENDATION
Approval of the policy will establish that the City is in full compliance with Government Code Section 65589.7.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website. A link to the Fair Political Practices Commission website is attached to this Report as Attachment 5.
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Ryan Dyson, Housing Specialist 2
Reviewed by: Mansour Nasser, Water and Sewer Systems Division Manager
Reviewed by: Michelle Zahraie, Senior Management Analyst
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution Approving a Policy to Prioritize Water and Sewer Services for Affordable Housing Developments