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SR-505-003 . . 50s-- (/0 3 //-]> SEP - 5 1989 ~ " GS:SES:BG:JSH 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, " I/-}) SEP - 5 1939 - 1 - . . 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 - 2 - . . I 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. - 3 - . . 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 - 4 - . . 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. - 5 - . . 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 - 6 - . . 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 - 1 - . . 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 - 8 - . . 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 - 9 - . . 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. - 10 - . . 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 - 11 - . . deposited in Revenue Account No. 31-933-434-000-000 (Industrial . 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 - 12 - . . , 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 - 13 - . . 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 . . .. 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: ~~~ 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 =====::====== ----------- ----------- =:========== ----------- ----------- ." 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.