SR-700-004 (7)
GS:SS:EL:a
Councll Meetwg: enuary 8, 1985
f~ ~ !'to
Santa ~ca, Californla
7 tJ{J- cot(
//-E
AI 8 ,g8S
To:
Mayor and Clty Councll
From:
Clty Staff
SubJect:
Underground Tank Regulatlons and Fee Schedule
INTRODUCTION
ThlS report recommends that CIty Councll adopt by resolutlon the
attached
regulatIons
and
procedures
and
adopt
fees
for
underground storage of hazardous materlals to fulflll Sections
8602 and 8605 of Ordlnance No. 1291 CCS, the Clty'S underground
tank ordlnanCe.
BACKGROUND
On December 13,
1983,
the Clty Councll
adopted emergency
ordlnanCe No.1291 CCS, to regulate the storage of hazardous
substances ln underground tanks. The purpose of the Ordlnance is
to
establlsh
a mandatory underground
tank
lnspection
and
monltorlng program to reduce the chances of envlronmental damage
resultlng from leakIng tanks.
Under Sectlon 8602 and 8605, the
Clty Councll may establish by resolutlon standards, regulatlons
and fees to lmplement the ord lnance. The Department of General
SerVIces lS responslble for admlnlstratlon of the ordlnance.
REGULATIONS AND PROCEDURES
Staff has based the Regulatlons and procedures on the most
current pertlnent lnformatlon and the prellminary regulatlons
prepared by the State Water Resources Control Board and the Los
Angeles County Department of Englneers.
//-E
JAN 8 1985
- 1 -
GS:SS:EL:a
Councll MeetIng:
!nua:--y 8, 1985
.
Santa Monlca, Callfornla
The Regulatlons and P:--ocedu:--es lnclude seven chapters and flve
appendlxes. The flrst chapte:-- explalns gene:--al provIsIons such as
appllcabillty of the :--egulatlons. Chapte:-- two and th:--ee speclfy
the requI:--ements that must be met by new tanks and eXlstlng tanks
respectlvely. The fourth chapter detalls the :--equlrements fo:--
laboratory analysls of water and sOll samples In the vlclnlty of
the tanks.
Chapter flve explalns the :--equirements of a slte
lnvestlgation should a follow-up study be needed to lnvestlgate
posslble r.ontamlnatlon of the envl:--onment by a tank. In chapter
SlX, requl:--ements to permanently abandon a tank are glven and
chapter seven explalns the general steps of the permlt process.
The appendixes lnclude Santa Monlca's Underground Tank O:--dlnance
and standards used by the Santa Monlca Flre Department, a copy of
the Los Angeles County Department of Health SerVlces well
permlttlng POllCY, and a descrlptlon of lnventory reconclllatlon.
The formulatlon of the Regulatlons and Procedures for Santa
Monlca has been delayed awaltlng the promulgation of :--egulatlons
by the State and County.
The State and County Regulatlons form
the f:--amework of Santa Monlca's regulatlons.
Complete and
updated coples of the Regulatlons and procedu:--es wlll be on flle
at the Santa MonIca Llb:--a:--y, Clty Councll Offlce and in the
offlce of the Dl:--ector of Gene:--al Servlces.
Hlghllghts of Regulatlons
Several featu:--es of the :--egulatlons are:
Monlto:--lng wlll be :--equl:--ed fo:-- all unde:--g:--ound tanks
contalnlng hazardous materlals - no exemptlons.
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GS:SS:EL:a
Councll Meeting:
tnuary 8, 1985
Santa M~ica, CalIfornla
Rellnlng of eXlstlng tanks wlll not be permltted;
The
IntensIty
and
frequency
of
monltorlog
varles
accordlng to the tank's potentIal for contaminatlon of
the groundwaterj
Varlances wIll not be automatIcally granted for secondary
contalnment of plplng slnce many leaks occur In the
plplngj
An lnterim monltorlng program conslsting of strlngent
tank testlng and lnventory reconclllatlon wIll be allowed
for up to three years for small buslnesses, non-proflt
organlzatlons and governmental agencles wlth non-leaklng
tanks lf they commlt to close (remove), replace wlth new
tanks, or lnstall the reqUired monltorlng equlpment on
eXlstlng tanks.
E,conomlC Impact of Regulatlons on Buslne~s
Staff ant lC lpates that some bus lnes ses, espec lall y small ones,
wlll be severely effected by the flscal lmpact of any underground
tank regulatlons. The costs of brlnglng a tank lnto compllance
wlth
any
of'
the
proposed
regulatlons
depends
upon
the
hydrogeology of the slte where a tank lS located.
In a flscal lmpact statement
prepared by the State Water
Resources Control Board, fIve al ternatl ve costs were glven to
brlng an eXlstlng tank up to standards, dependIng on the
hydrogeology of' the tank's loeatlons. For the alternatlve that
most llkely fItS the hydrogeology w Santa Monica, the State
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GS:SS:EL:a
Councll Meetlng:
&ual"Y B, 1985
Santa M~ca, Callfol"nla
est lmates that it wlll cost appl"ox lmatel Y $6,000 pel" ex lstlng
tank lnltlally to meet the standards.
Staff antlclpates that ~any small buslnesses wlll not have enough
capltal avallable to lmmedlately meet the Clty'S underground tank
ordlnance. Staff thel"efore, has included an InterIm MonltOl"lng
Program for up to three years
to allow buslnesses
wlth
non-leaklng tanks to conform wlth the regulatlons wlthln thlS
pel"lod Ol" to remove (close) thell" underground stol"age faclllties.
Staff has pl"ovlded the Chamber of Commerce wlth a copy of this
Staff Report fol" l"eVIew.
Proposed Admlnlstr~tlon of Undel"~l"ound Tank Re~ulatlons
Staff estlmates that. appl"oxImat.ely 200 entitles In the Clty own
Ol" operate undel"gl"ound tanks inC'ludlng: buslnesses, utllltles,
schools, and 6 Clty departments. Permlts wlll be lssued for all
of these tanks, although mul tlple tanks at one locatlon can be
put on the same permlt. Based on a reVlew of past l"ecords, thel"e
wlll be about 10 new tank lnstallatlon pel"mlt appllcatlons
annually.
St.afflng l"equll"ements
to pl"ocess permlts fall lnto thl"ee
dlffel"ent categOl"les: plan checking, on-slte lnspectlons, and
genel"al admlnistrat.lve work.
- 1j -
GS:SS:EL:a
Councll Meeting:
.nual"Y 8, 1985
Santa M~ca, Callfol"nia
Plan Checklng
The Depal"tment of Genel"al Sel"V1CeS wlll do plan checklng and
contl"act out plan checklng If necessal"y (as the Building
Depal"tment now does under certaln Cll"CUmstances). In keepIng with
past practices, the Flre Department wlll be forwarded a copy of
the plans for thelr reVIew. The current procedures for plan
checklng new constructlon between the Fll"e Department, BUlldlng
and Safety Department and General SerVIces Department will
accommodate the admlnlstratlon of the Underground Tank Ordlnance.
Inspectlons
Inspectlons wlll be conducted annually by one eXlstlng Water
Depal"tment employee.
Staff plans to have one of the Water
D1V1SIon Fleld Inspectors pel"form the on-slte lnspectlons. ThlS
employee lS currently lnvolved ln another maJor proJect WhlCh
wlll be complete ln the neal" future, therefore, lt is antlclpated
that he wlll be able to add these lnspectlons to hlS current
workload.
In Table 1, lt lS estImated that about 487 hours
annually,
or 65 workdays wlll be needed to lnspect all the
estlffiated
200
tank
permlttees.
ThlS
table
was
made
by
extrapolating data from 70 bUSlnesses dlsclosing tanks under the
tOX1C Chemlcal disclosure ordlnance.
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GS:SS:EL:a
Coun"ll MeetHlg:
.uary 8, 1985
Santa MJltca, Callfornla
TABLE 1
ESTIMATE OF STAFF TIME FOR ANNUAL INSPECTIONS OF TANK
Inspectlon Total
# TankslS1te # BUSlnesses Hrs./Slte Hours
77 .2 2.0 154.40
2 42.8 2.5 107.00
3 28.6 2.5 71.50
4 28.6 3.0 85.80
5 17 .2 3.0 51.60
>5 5.6 3.0 ~
Grand Total 200 Grand Total 487.1 Hours
(64.94 days)
Admlnlstratlve Work
Estlmates of the admInIstrat1ve staff1ng time needed ln the flrst
year and for each followlng years are glven In Table 2. As wlth
Table 1, thlS table was made by extrapolating the data from the
70
bUSlnesses discloslng tanks under
the
to x 1 C
chemlcal
dIsclosure ordlnanpe. Altogether, about 46 days wlll be needed in
the flrst year, and 38 days in each of the followlng years for
admlnlstratlve work (not lncludlng clerlcal support).
Staff
antlclpates that the Admlnlstratlon will lnvolve the review of
varlance requests, supervlslon of the fleld lnspector and follow
up on fallure to comply lncludlng admlnlstratlve hearlngs.
The management and supervlslon of the program wlll be done by
current General Servlces Staff except that 25% of the time of the
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GS:SS:EL:a .
Councll Meeting: nuary 8, 1985
Santa ~lca, Callfornla
TOX1C Chemical Coordlnator will be required in program
admlnlstratlon.
TABLE 2
ESTIMATE OF STAFF TIME FOR ADMINISTRATION OF TANK PROGRAM
First Year Following Yrs.
Tanks/ Admw. Adm In .
Slte 1/ BUSlnesses Ho ur s Total Hours Total
77.2 77 .2 77 .2
2 42.8 2.0 85.6 1.5 64.2
3 23.6 2.0 57.2 1.5 42.9
4 28.6 2.5 71.5 2.0 57.2
5 17.2 2.5 43.0 2.0 34.4
>5 5.6 2.5 ---1.!!..:.Q 2.0 --1l.:1.
Grand Total 348.50 hrs. Grand Total 287.1 hrs.
(46.46 days) (38.28 days)
Alter~ative .~o.. a City-Administered Program
As an al ternatl ve to the Department of Gener al Serv lCes
conductlng tanK lnspectlons and admlnlsterlng the program, a
contract could be negotlated with the Los Angeles County
Department of Englneers for thlS purpose.
If the county
adminlsters the Clty'S program, Staff has been told the total
flve year cost to the Clty would be approxlmately $232,328
(lnformatlon from the County Englneer) compared to a cost of
approxlmately $110,000 for a Clty-admlnlnstered program (over the
flrst flve years). Slnce a County admlnlstered program would be
mucp costller and the County lS now already overburdened by the
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GS:SS:EL:a
Councll Meeting:
.
January 8, 1985
.
Santa Monlca, Callfornla
underground tank demands of other cltles, thlS alternatlve lS not
recommended.
FEES
Under the ordlnance, each underground tank must be permltted In
order to operate.
Each permlt lS to be lssued for a flve year
per~od and wlll be contlngent upon an appllcant meetlng the
constructlon, mon~torlng, and lnspectlon requlrements in the
Standards and Regulatlons.
A fee wIll be charged for each
permlt and each tlme the permlt lS renewed or amended.
These
fees wlll offset costs incurred by the Clty to admwlster the
program.
Present Clty Fees Pertalnlng to Underground ,~anks
The flre department charges and wlll contlnue to charge opera-
tors of certaln underground tanks annual flre permlt fees. These
annual flre fees cover record keeplng costs only and no annual
inspectlons are performed. Auto fuellng statlons are charged $10
and storers of hazardous materlals $15.
Add 1 tlonally, new tank
lnstallatlons are charged a one-tlme fee of $45 per tank and
the" e lS a $15 per tank fee for removal, both of which are
charged by the Fl"e Department.
However, all other types of
buslnesses, such as car dealers and dry cleaners wlth a flammable
gasollne tanks are not charged any annual fee.
In summary, many businesses ln Santa Monlca are operating under-
ground tdnk wlthout paYlng any klnd of fee.
- 8 -
GS:SS:EL:a
Councll Meeting:
.nuary 8, 1985
Santa M~ca, Callfornla
P~oposed Fee Schedule
The proposed fee schedule lS deslgned to recover all admlnlstra-
tlVe costs related to this program.
Staff antlcipates that It
wlll take mo~e tlme lnltlally to brlng a buslness lnto compllance
wlth the underground tank ordlnance because plan checks and slte
lnspectlons wlll be requlred of leak detection and monltorlng
systems.
There fore, the proposed fee schedule has hlgher fees
for Inltlal permlttlng as compared to renewal permits.
Although the ordlnance mandates lnspectlons only once every three
years, staff believes an effectlve program requires more frequent
lnspectlons.
Other local government programs of WhlCh staff lS
aware call for annual lnspectlons.
The proposed fee schedule llsted in Table 3 lncludes all the dlf-
ferent types of fees proposed In the ordlnance:
operat lng tank
permlt, permlt renewal, and permlt amendment.
TABLE 3 - PROPOSED 5 YEAR UNDERGROUND TANK PERMIT FEE SCHEDULE
PermIt Fees (Flve-Year Permlt):
tank per slte: $340.
2-3 tanks per slte: $470.
4 or more tanks per sIte: $590.
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GS:SS:EL:a
Councll Meetlng: ~uary 8, 1985
Santa M~ca, Callfornla
*.Ren~wal Per.ll!lt Fee (ls,s,ued for ,add,ltlO.nal ,flve-y.~!3r wcre,men~s):,
tank per slte: $300.
2-3 tanks per sIte: $410.
4 or more tanks per slte: $510.
*The renewal permit fee lS the lnltial permit fee less the
plan check costs.
~~A~~nd ~erm~t Fee: $50 per change per tank.
**Amendlng a permlt would include such ltems as repalrlng a
tank, closure of tank(s), or transfer of permlt.
Ratlonale f~r Fee Schedule - Staff Hours Requlrem~nts
The flrst tlffie a bUSlness lS lssued a permit to operate an under-
ground tank, staff will need to plan check constructlon and
monl tor lng deslgns and conduct lnspect lons to assure compllance
wlth approved plans.
Admlnlstratlve tlme wlll also be requlred
to process the permlt.
After the lnl tlal year of a perml t, it lS antlc lpated that the
staff tlme requlred wlll decrease SInce lt W1II not be necessary
to conduct plan checks.
The fee schedule reflects the decrease
ln staff hours required after the flrst year of the 5-year
permlt.
Table 4 glves estlmates of the staff hours needed to lmplement
the permit program on a cost-recovery baS1S.
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GS:SS:EL:a
Councll Meetlng:
.
Janual^Y 8, 1985
.
Santa Monlca, Callfol^nia
TABLE lj - STAFF HOURS FOR 5-YEAR TANK PERMIT
Inspect.Hrs. PIn Ck.Hrs. Adm ln .Hrs .
($20/hr.) ($4,o/hr) ($20/hl^) Cost
1 Tank 2.0 1st Yr. 1.0 1st Yl^. 1.0 1st Yr. $100
2.0 Ea.Yr. 1 .0 Ea.Yl^. $240.
Total Flve Year Fee: $340
2-3 Tanks 2.5 1st Yr. 1.5 1st Yl^. 2.0 1st Yr. $150
2.5 Ea.Yl^. 1.5 Ea. Yr. $320
Total Flve Yeal^ Fee: $470
lj Tanks 3.0 1st Yl^. 2.0 1st Yr. 2.5 1st Yr. $190
3.0 Ea.Yl^. 2.0 Ea.Yr $400
Total Flve Yeal^ Fee: $590
Comparl~on of Under~round Tank Pel^mit Fees wlth O~hel^ ~oca~
J\~.encles
Flve othel^ local agencles have set undel^ground tank fees to im-
plement new undel^gl^ound tank regulatIons and
Staff t S pl^oposed
fee schedule lS conslstent wlth them.
The other local pel^mlt
fees al^e compared ln Table 5 wlth those that Staff has proposed
for the Clty..
The compar lson is based on the average annual
cost of a permlt over the 5-year term.
A summary of the othel^
local governments fee schedules lS found ln Attachment A.
- 11 -
GS:SS:EL:a
Councll Meetwg:
.
January 8, 1985
.
Santa Monica, Callfornla
TABLE 5
AVERAGE ANNUAL OPERATING FEES OF LOCAL
GOVERNMENTS BASED ON 5-YEAR PERMIT
CITY
NUMBER OF TAN,KS
1/S1te 2/S1te 3/s1te 4/s1te 5/s1te 6/slte
1. Ventura Cnty* $180 $240 $300 $360 $420 $480
2. Vernon $66 $96 $129 $162 $195 $195
3. Long Beach $75 $85 $95 $105 $115 $125
4. Santa Monica $68 $94 $94 $118 $118 $118
5. L.A. Clty $82 $82 $82 $82 $82 $82
6. L.A. County $113 $113 $113 $113 $113 $226
* Ventur a County Program lS to also fund slte cleanup
lnspectlons.
BUDGET/FINANCIAL IMPA.CT
The approval and llnplementatlon of the proposed underground tank
fee schedule wlll generate revenues ln quantltles sufflclent to
cover the planned costs of admlnlsterlng the program. Based on an
estlmate of 200 tank permits, staff estlmates that approxl~ately
$110,000 will be generated ln revenues OVer the flrst 5 years of
the program. To properly trark these funds, a separate revenue
llne-ltem In the water fund wlll be establlshed. Staff has estl-
mated the tlme requlred to lmplement thlS program, however, the
actual lmpact on Staff tlme wlll be evaluated and revIewed as the
program lS lmplemented. Implementatlon of the program wlll begln
wlthln a month of adoptlon, however, due to the uncertalnty over
the number of permlts to be lssued thlS flscal year, Staff wlll
- 12 -
GS:SS:EL:a
Councll Meetlng:
.
January 8, 1985
.
Santa Monlca, Callfo~nla
return to Councl1 prlor to year-end \<nth cur~ent flscal yea~
revenue flgures.
Adoptlon of the Regulatlons and Procedures wlll requlre the SlX-
Cl ty Department's WI th ope~atlng tanks to lnstall the ~equ i~ed
monltorlng equlpment. Staff estlmates that the requlred monltor-
lng equlpment wlll be $4000 to $6000 per tank. The total cost to
the Cl t Y wlll be $246,000.00 d lst~ lbuted among the departments
wlth unde~g~ound tanks (Flre Department-9, Llb~a~y-l, Transporta-
tlon-12, Parks and Recreatlon-2, Pollce-1 and Genel"al Se~vices-
12). The lnstallatlOn of the reqUlred equlpment lS a capital
expendlture and a p~ogram will be b~ought befo~e the Clty Councll
as a part of the FY 1985-86 capltal budget.
State Surcharges
In addItion to the pe~mIt fees, the Clty wlll also have to col-
lect two surcha~ges fo~ The State Water QuaIl ty Cont~ol Boa~d.
One surchal"ge is a one-tlme fee of $5.00 per tank to cover the
costs of developlng statewlde regulatlons.
The other surcharge, to be collected each tlme a permlt lS lS-
sued, wlll be used to cove~ The Board I s costs ln investlgatlng
groundwater contamlnatlon problems and overseelng othe~ under-
ground tank prog~ams around the state. The amount of thlS sur-
charge has not been set, but Staff has been told lt will llkely
be $29 per tank.
RECOMMENDATION
Staff recommends that the Clty Council:
- 13 -
GS:SS:EL:a
Councll MeetIng:
.
January 8, 1985
.
Santa Monica, Callfornla
1. Adopt the attached resolutlon adoptlng the use of the
Regulatlons and Procedures for the Underground Storage of
Hazardous Materlalsj
2. Adopt the attached resolutlon establlshlng a fee schedule
for the underground tank permit.
Prepared by: Stan Scholl, DIrector of General Servlces
Jack Hoagland, Adminlstratlve Water Englneer
Julle Lee, TOXIC Chemlcal Consultant
Complete Regulatlons on flle ln the Clty Councll Offlce.
Attached: Resolutlon to Adopt Regulatlons and Procedures
Resolutlon to Adopt Fee Schedule
Attachment A - New Fees in other Local Cltles
- 14 -
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RESOLUTION NO.
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
ESTABLISHING STANDARDS AND REGULATIONS FOR
CONSTRUCTION, OPERATION AND MONITORING
OF UNDERGROUND STORAGE TANKS
WHEREAS, the Clty Councll may establIsh the standards and
regulatlons for the constructlon, operatlon and monltor~ng of underground
storage tanks, pursuant to Munlclpal Code Sectlon 8602(c).
NOw, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to Munl~lpal Code Sectlon 8602(c), the Clty
Councll of the Clty of Santa Monlca adopts the accompanYlng Standards and
Regulatlons for the Constructlon, OperatIon and Monltoring of Underground
Tanks.
SECTION 2.
The Clty Clerk shall certlfy to the adoptlon of thlS
Resolutlon, and thenceforth and thereafter the same shall be In full force
and effect.
Approved as to Form:
~~.~
Clty Attorney
.
.
RESOLUTION NO.
(City Council ScrlesT
A RESOLUTIOrl OF THF CITY COU::CIL
OF TilE CITY 0.- StdlTA f:,'1!:;CA
ESTAiJLISIlIiIG All Uil;J1::RGROUiILJ [AUK H.r: SCIIEDULE
WIIEREAS, the City Councl1 may establish and from
tune to tlme amend the perrn t fee to operate an underground
storage tanK, pursuant to Section 8605 of the Santa Monica
Municipal Coce,
NOli, THEREFORE, TIH:. CITY COUUCrL OF THE CIn OF SAJ;T,\
MONICA DOES RESOLVE AS FOLLO~3:
SECTror~ 1. UTld':.T~~r_~~r~~_I~~~~_E~!~~~_i~~-.I~~.e(l~l~~ The
fees for underground tank permits, 35 provIJcd for in ::3ectlon
.
86d2 of .the Santa fl<JtllCa f:unicpal Coole, shJll be dS follows:
InitIal rermlt Fee:
1 tank per site - $3~0.
2-3 tanks - $470
4 or more tanks per slte - $590.
Renewal PermIt Fee:
1 tank per slte - $300.
2-3 tanks per site -S410.
4 or more tanks per Site - $51Q~
A~~nd Permlt Fee:
, Ai'l cases-':-S50
.
.
SECTION 2. The City Clerk shall certlfy to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
Approved as to Form:
~'-.~---
Clty Attorney G
~
"
- 2 -
~~.