East Palo Alto Sanitary District Sewer Capacity Fee Update Study and Adoption of Updated Sewer Capacity Fees

The East Palo Alto Sanitary District is adopting updated sewer capacity fees based on a recent study that determines the maximum justifiable charges for new development, calculated using a proportional fair share methodology. These fees are intended to fund critical sewer infrastructure improvements and include a one-time charge to access existing capacity at the Palo Alto Regional Water Quality Control Plant. The study concludes that the maximum justifiable fees are approximately five percent lower than the current sewer connection fees, and staff recommends adopting this reduced level, though the EPASD Board retains the discretion to lower them further. This action is administrative and regulatory in nature, exempt from California Environmental Quality Act review under specific provisions, as it does not constitute a new project but rather an adjustment to existing fee structures. No physical delivery, construction, or procurement is involved; the focus is entirely on fee adoption and compliance with municipal financial and environmental planning guidelines. There is no formal contract award process, no solicitation or contracting officer details, and no vendor selection or evaluation factors as this is not a federal procurement. The City of East Palo Alto acts as the governing entity, with the Public Works Director serving as the primary point of contact. No federal acquisition regulation clauses, payment systems, accounting codes, or contractor representations apply because the action involves local fee adjustment under state environmental law, not federal contracting. The place of performance is East Palo Alto, California, and the initiative is designated as a forecast, indicating it is a planning and policy action rather than a binding fiscal commitment or service contract. The updated fees will be collected from developers to ensure that new growth fairly contributes to the cost of expanding and maintaining regional sewer capacity, with no competitive bidding, delivery schedules, or performance metrics involved in the process.