SR-505-003
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SEP - 5 1989
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Council Meeting: September 5, 1989
Santa Monica, California
TO: Mayor and City Council
FROM: city staff
SUBJECT: Recommendation to Approve Expanded Industrial Wastewater
control Program and Adopt Resolution Establishing Fees
INTRODUCTION
This report recommends the city Council approve an expanded Industrial
Wastewater control Program to protect both the City's sewer system and
the water quality of Santa Monica Bay and adopt the attached
resolution establishing Industrial Wastewater Control fees. The
report also discusses the need for increased staffing levels and
program funding.
BACKGROUND
The Federal Clean Water Act, enforced by the Environmental Protection
Agency (EPA), mandated that the City of Los Angeles adopt and enforce
a wastewater pretreatment program which sets forth 1) requirements for
pretreatment of defined types of sewage; 2) definitions for approved
sewage discharges 3)
pernd t requirements; and 4 )
enforcement
procedures. The city of Santa Monica, along with several other area
cities and agencies, contracts with the City of Los Angeles for sewage
treatment and disposal services at the Hyperion Treatment Plant. Los
Angeles holds both the federal and state wastewater discharge permits
for the Hyperion plant and the City of Santa Monica is,. therefore,
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SEP - 5 1939
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required to adopt and enforce a pretreatment program in accordance
with stipulations adopted by Los Angeles.
The City Council directed the City Attorney to prepare such an
ordinance and on June 10, 1986, the City Council adopted Industrial
Wastewater Control Ordinance No. 1373 (CCS). A consultant, operations
Consultants Inc. (OCI), was retained by the city to design and
implement an Industrial Wastewater Control program based on the
requirements of the ordinance. Major tasks included surveying
businesses in the City to determine those which would be required to
be permitted and establishing an automated database management program
to track permit information.
At the time the ordinance was adopted, the EPA and Los Angeles had not
finalized the various requirements of the Industrial Wastewater
Control Program. As a result of on-going EPA audits and recent policy
and enforcement decisions made by Los Angeles, the City of Santa
Monica is required to expand the requirements into a more
comprehensive program than originally envisioned by all agencies
involved.
Based on the requirements which have been formalized by the EPA, the
number of Santa Monica businesses requiring permits is approximately
1, 11B. As many as eighteen annual inspections/samples per business
are required. Also, the ci ty must perform quarterly
inspections/samplings for the three points where the City I S sewer
lines discharge into the Hyperion wastewater treatment system.
The Los Angeles Industrial Wastewater Control Program has been audited
by the EPA and has received tentative staff level approval. Staff has
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been advised by the EPA that all contract cities should be currently
enforcing their respective programs at the expanded level described
above. If the inspections and samplings are not performed on a timely
basis, the City of Santa Monica may be held in non-compliance of the
1986 Clean Water Act and fined up to $10,000 a day.
Monthly meetings with the City of Los Angeles and the contract cities
are held to clarify inspection/sampling requirements and to discuss
both present and future administrative items which may result in
further modifications to Santa Monica's program.
PROGRAM DEVELOPMENT
The Industrial Wastewater Control Program consists of a permit,
inspections and sampling. The purpose of the permit is to ensure that
targeted businesses do not discharge more than a specified limit of
industrial waste into the wastewater system. The permit application
provides basepoint information which is reviewed by staff to determine
appropriate requirements. The inspections allow on-site observation
of processes, verification of compliance with permit requirements and
assurance that discharge points are properly maintained and free of
any hazardous materials.
Sampling ensures that actual discharges
remain in compliance with permitted limits.
Business Category/Inspect~on and sampling Frequency
The first step in developing an industrial waste control program for
Santa Monica was to determine the number of businesses which required
permits and the inspection/sampling frequency required by each
business category.
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Through analysis of production processes, volume and types of
discharges, six business categories have been identified as requiring
permits. Each business in the City was reviewed to determine if it
belonged to one of the six categories. As a result of this process it
was determined that 1,118 businesses operating in the City are
required to be permitted under Ordinance No. 1373. An inspection
frequency which complies with federal and City of Los Angeles
standards was then established.
The following six business categories and
inspection/sampling frequencies were established:
corresponding
1. Categorical (requires 18 inspections and samplings per year).
Maj or industry categories generating hazardous wastewater which are
specifically limited by the Federal Clean Waters Act. Examples are
metal finishing, porcelain and enameling, and electroplating.
Approximately 3.25 hours of staff time (2.25 inspection, 1.0 clerical)
are required to perform each inspection/sampling for this category.
Inspection time includes travel to and from the site, set up of
equipment, sampling, visual inspection, and follow-up paperwork.
Inspection time will vary primarily as a result of the different
inspection/sampling requirements of each business category. clerical
support includes data entry, follOW-up paperwork, filing and
correspondence.
2. Significant Users (requires 6 inspections and samplings per year).
As defined by the city of Los Angeles, businesses whose sewer
discharge is in excess of 250,000 gallons per day or is considered
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potentially hazardous to the sewer system. Examples are hospitals,
large office buildings, and plastic molders.
Approximately 2.0 hours of inspector time and 1.0 hour of clerical
support are required for each inspection/sampling for this category.
3. Larqe Volume Photo Finishers (requires 4 inspections and samplings
per year). This category is for photo finishers who process more than
six rolls of film per day.
Approximately 2.0 hours of inspector time and 1.0 hour of clerical
support are required for each inspection/sampling for this category.
4. Auto Repair, Auto Dealers with Auto Repair, Problem Restaurants
(requires 3 inspections and samplings per year). Auto repair and auto
dealers with auto repair are included in this category because of the
number of complaints received from citizens regarding illegal storm
drain discharges. Also included are problem restaurants which are
defined as those restaurants who have history of or have potential to
block the sewer with grease or other food by-products.
Approximately 1.75 hours of inspector time and 1.0 hour of clerical
support are required for each inspection/sampling for this category.
5. Printers and others (requires 2 inspections and samplings per
year). Offset printers are included because of the chemicals used in
the printing process. other businesses in this category include car
washes, photo finishers who process less than six rolls of film per
day, and bakeries.
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Approxilnately 1.75 hours of inspector time and 1.0 hour of clerical
support are required for each inspection/sampling for this category.
6. Restaurants, Gas Stations, and others (requires 1 inspection and
sampling per year) .
This category includes all non-problem
restaurants, gas stations without auto repair, and other bus inesses
such as supermarkets, laundries, and furniture restoration.
Approximately 1.00 hour of inspector tim.e and .50 hour of clerical
support are required for each inspection/sampling for this category.
The following table summarizes this information.
Annual
Sampling! Average Estimated
Number of Inspection Hours per Total
Business Category Businesses Frequency Inspection Hours
Categorical 6 18 3.25 351
significant Users 16 6 3.0 288
Large Photo
Finishers 50 4 3.0 600
Auto Repa.ir,
Auto Dealers wI 259 3 2.75 2,137
Auto Repair,
Problem Rest-
urants
Printers, others 340 2 2.75 1,870
Restaurants, Gas
stations, others 447 1 1.50 671
Total 1,118 5,917
Staffing Needs
After the number of business and inspection/sampling frequencies were
determined and the average hours required for each type of inspection
were established, staff was able to determine appropriate staffing
levels for the proqram to ensure the City complies with mandated
requirements.
An estimated total of 5,917 staff hours would be
necessary to carry out inspections/sampling. In addition to the time
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required for inspections and samples, approximately 753 staff hours
per year are required to review and process permit applications. staff
time is also required to respond to complaints and emergency spills,
carry out enforcement proceedings against violators, and perform
general administrative tasks. One Lead Environmental Inspector
position and one Environmental Inspector position are currently
budgeted. These positions equate to only 4,160 hours per year,
without consideration of vacation or sick time. Current staff
therefore cannot carry out the program in accordance with the
stipulations of the EPA. The recommended staffing level for the
program is as follows:
Lead Environmental Inspector (1 Budgeted). The Lead
Environmental Inspector will administer and enforce the provisions of
the Industrial Wastewater Control Ordinance and supervise the program
staff. Duties will include processing Industrial Wastewater permit
applications, sampling, reviewing analysis performed by the
laboratory, determining the quantity and character of industrial waste
generated by a business and investigating citizen complaints and
emergency spills.
Environmental Inspector (1 budgeted, 1 new requested). The
Environmental Inspectors will perform the same general duties as the
Lead Environmental Inspector: however, these positions will not
supervise any staff.
Staff Assistant III (1 new requested). The current
organizational structure of the Environmental Programs Unit includes
one Staff Assistant III to support the activities of the Environmental
Programs Administrator, Environmental Coordinator, Lead Hazardous
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Materials Technician, Hazardous Materials Technician, Lead
Environmental Inspector and Environmental Inspector. Since clerical
duties as outlined for the Industrial Wastewater program alone will
require a minim-UlIL of ~,_450 hours per year, the creation of a new
position is proposed.
The recommended staffing level assures that the City of Santa Monica
is in compliance with all federal regulations and Los Angeles
requirements with regard to the Industrial Wastewater Control Program.
It also guarantees that there will be adequate staff available to
address related industrial wastewater issues generated from citizen
complaints and emergency spill response. It is anticipated that the
new program staff would be hired and in place between December 1, 1989
and January 1, 1990.
Program Budget
Exhibit A details the proposed budget for the Industrial wastewater
Control Program and outlines the additional appropriations which are
required. staff is requesting that an additional $142,692 be
appropriated in FY 1989-90 from the Wastewater Fund to the following
Wastewater Environmental Program Division categories:
Salaries & Wages
Supplies & Expenses
Capital Outlay
Total
$ 35,377
68,315
39,000
$142,692
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Program Revenues
costs for the program will be fully recovered through the
implementation of two new fees: 1) an application fee renewable every
three years, and 2) an annual sampling and inspection fee.
Permit Application Fees. This fee is assessed to recover
the costs associated wi th reviewing applications,
determining
pretreatment requirements for each business, computer input of
in! tial permit appl ication data and data updates as required. A
revised application and fee would also be required whenever there is a
change of ownership, industrial process modification, or other
significant change in business operation that would affect the quality
or quantity of the industrial discharge.
The application fee is based on the average staff time required to
process the application and fee. This calculation is presented below.
categorical Permits
Lead Environmental/
Environmental Inspector
(average)
Staff Assistant III
Fiscal Staff II
Average
Time
Required
Hourly
Rate
Including
Overhead
2.0 hrs
$74.05
1.5 hrs
0.6 hrs
$38.15
$15.65
Total Fee
$128.00
All Other permits
Lead Environmental/ 1.0 hrs
Environmental Inspector
(average)
Staff Assistant III 1.0 hrs
Fiscal Staff II 0.6 hrs
$37.02
$25.44
$15.65
Total Fee
$78.00
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Categorical dischargers are assessed the higher fee due to the
complexity of the documentation and the federal reporting procedures
required.
During FY 1989-90, all businesses will be issued a permit. The
permits will have staggered renewal dates and corresponding pro-rated
application fees. Approximately $58,388 in revenues will be generated
from the application fees this fiscal year. In subsequent years, one
third of each category of permit will be renewed which will generate
annual permit revenues of $29,168.
Annual Inspection and Sampling Fees. The fee is based on
the average time required to inspect/sample and process follOW-Up
paperwork. The hourly inspection rate was determined by subtracting
total annual permit application fee revenue from the total estimated
program cost. This amount was then divided by the total proj ected
number of inspection/sampling staff hours required. A ten percent
contingency factor was added to cover the potential costs associated
with enforcement activities, non-payment by permittees, and any
program modification which may occur as a result of on-going EPA
program audits. The resulting hourly inspection cost factor is
$78.25. Using this cost factor, the fee level for each category was
calculated and is summarized below.
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Annual
Estimated Sampling/
Hours of Inspection Hourly Bi-
Business Type Inspection Frequency Rate Annual Fee monthly*
categorical 3.25 18 $78.25 $4,578 $763.00
Significant Users 3.00 6 78.25 1,409 235.00
Photo Finishers 3.00 4 78.25 939 156.50
Auto Repair and
Prok>lem
Restaurants 2.75 3 78.25 646 108.00
printers, Others 2.75 2 78.25 430 72.00
Restaurants, Gas
Stations,
Others 1.50 1 78.25 117 19.50
*staff recommends that the annual fee be charged on a bi-monthly basis
and be included on the utility bill.
staff is anticipating that since full program implementation is
occurring during the middle of the fiscal year only 50% of the annual
inspection/sampling fees will be collected this fiscal year, resulting
in revenues of $231,388.
FINANCIAL/BUDGET,IMPACT
Once the Industrial Wastewater Control Program is fully implemented,
annual program costs are proposed to be approximately $450,000 and
will be fully recovered by the recommended fees.
For FY 1989-90,
program costs will be $249,509.
These proposed expenditures are
detailed in Exhibit A. Anticipated revenue in FY 1989-90 will include
$58,388 in application fees and $231,388 in inspection and sampling
fees for a total of $289,776. This represents an increase of $157,932
over the $131,844 shown in the FY 1989-90 budqet.
Funds will be
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deposited in Revenue Account No. 31-933-434-000-000 (Industrial
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Wastewater Fees).
COMPARISON OF INDUSTRIAL WASTE FEES
A comparison of Industrial Wastewater Control Program fees charged by
the City of Los Angeles, the City of Burbank (contract city) and the
city of Santa Monica (contract city) was conducted and is presented in
the following table. Burbank is the only other contract city which
has implemented an industrial wastewater control program thus far.
COMPARISON OF INDUSTRIAL WASTE FEES
BUSINESS TYPE LOS ANGELES BURBANK SANTA MONICA
Categorical
Application Fee $ 94 $ 45 $ 130
Inspection/Sampling
Fee 2,728 4,800 4,565
$2,822 $ 4,845 $ 4,595
Significant Users
Application Fee $ 94 $ 45 $ 80
Inspection/Sampling 686 2,784, 1,405
Fee
$ 780 2,799 1,485
Photo Finishers
Application Fee $ 94 $ 45 $ 80
Inspection/Sampling 564 1,566 935
Fee
$ 658 1,611 1,015
Auto Repair and Problem
Restaurants
Application Fee $ 94 $ 40 $ 80
Inspection/Sampling
Fee 482 1360 645
$ 576 $ 1400 $ 725
Printers, others
Application Fee $ 94 $ 40 $ 80
Inspection/Sampling
Fee 288 1,796 430
$ 382 $ 1,836 $ 510
Restaurants, Gas Stations,
Others
Application Fee $ 94 $ 40 $ 80
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Inspection/Sampling
Fee
$
124
218
$
722
762
$
120
200
RECOID-IENDATION
It is recommended that the city Council:
1. Approve the expanded Industrial wastewater Control Program as
described above;
2. Increase the budgeted industrial wastewater fee revenues for
FY89-90 by $157,932.
3. Add one Environmental Inspector position and one staff Assistant
III position to the Wastewater/Environmental programs Division and
appropriate $142,692 from the Wastewater Fund to the line items
described in the report; and
4. Adopt the attached resolution establishing Industrial wastewater
Control Ordinance fees as described in the report.
Prepared by: Stan Scholl, Director of General Services
Byron Gaines, utilities Manager
Jean Stanley Higbee, Administrative Analyst
Christopher Cataldo, Industrial Waste Inspector
Attachments: 1. Exhibit A.
2. Resolution
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RESOLUTION NO. (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING FEES FOR INDUSTRIAL
WASTEWATER CONTROL PROGRAM FEES
WHEREAS, the city Council of the city of Santa Monica adopted
Ordinance Number 1373 (CCS) on June 10, 1986 establishing the
Industrial Waste Control Program; and
WHEREAS, Section 5426 of said Ordinance enables the City council
to set fees to recover the cost of enforcing said Ordinance,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The fOllowing fees are hereby established as set
forth by Section 5426 of Ordinance Number 1373 (CCS):
Permit Application Fee
Business Type
Categorical
All Others
$
Fee
128.00
78.00
The permit application is renewable every three years.
Annual Inspection aDd 8amplinq Fee
Business Type
Categorical
Significant Users
Photo Finishers
Auto Repair and Problem
Restaurants
Printers, others
Fee
$4,578.00
1,409.00
939.00
646.00_
430.00
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Restaurants, Gas Stations,
Laundries, others
117.00
SECTION 2. The City Clerk shall certify to the adoption of this
Resolution, and thenceforth and thereafter the same shall be in full
force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
EXHIBIT A - COSTS. INDUSTRIAL WASTEWATER CONTF' PROGRAM
(4)
. (1 ) (2) (3) AppropriatIon
Full Program Program Funds In Requested
Annual Costs for Adopted for FY 89-90
Line Item DescriptIOn Costs FY 89-90 89-90 Budget [ (2)-(3) ]
Salanes and Wages* 227,132 142,194 106,817 35,3n
(Includes fnnge benefits
and self-msurance costs)
Supplies and Expenses
Utll-llght/Power 300 0 0 0
Uti I-Natural Gas 300 0 0 0
UM-Water 450 0 0 0
UtH- Telephone 1,900 1,900 0 1,900
Office Supplies/Expenses 500 1,500 0 1,500
Metered Postage 840 300 0 300
AdvertISing 1,000 500 0 500
Equipment Rental 500 500 0 500
Memberships and Dues 300 150 0 150
Yehtcles-Fuel/Lbr 2,700 2,000 0 2,000
Yehlcles-Insurance 2,000 1,200 0 1,200
Ins-Comprehenslve* * 40,000 0 0 0
SpecIal Equlp-Maint 200 50 0 50
Special Dept Supplies 6,000 3,000 0 3,000
Uniforms/Protective Clothmg 2,400 1,200 0 1,200
AdmlOlstratlve Indirect'" '" 46,410 0 0 0
Training 2,000 3,000 0 3,000
Employee Medical Exams 100 100 0 100
Prof. Services - No Bid.""" 105,830 52,915 0 52.915
Office Lease Space 7,650 0 0 0
Total Supplies and Expenses 221,380 68,315 0 68.315
Capital Outlay"" **
Computer Equipment 1,200 6.000 0 6.000
Furniture 0 6.000 0 6,000
Motor Vehicles 0 27,000 0 27,000
Total Capital Outlay 1,200 39,000 0 39,000
TOTAL - ALL CATEGORIES 449,712 249,509 106.817 142,692
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." The amount actually shown m the Adopted Budget 1S $131,844. The dJfference 1$
due to II change in the allocation of costs for the new positIOns in the Environmental Programs Umt
.. Self-Insurance and AdnnnlstratJve IndJrect costs WJll not be charged untJl FY 1990-91.
... Includes costs of contract samplmg IIJ1d chermcal analyses.
...... Cap1taJ Outlay expendItures are non-recurnng.