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SR-505-008 (6) EPWM:CP:BJ:F:\EPWM\ADMIN\STAFFRPT\IntegratedWasteContract.doc Council Meeting: December 11, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Agreement with the California Integrated Waste Management Board to Accept a $750,000 Grant for the Installation of Pollution Prevention Devices Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute an agreement with the California Integrated Waste Management Board (Board) to accept $750,000 in grant funds to install pollution prevention devices, also known as a Best Management Practice (BMP), in the Centinela Drainage Basin to reduce polluted urban runoff from entering Santa Monica Bay via Ballona Creek. Background Federal, state and local regulations require the City to curb urban runoff pollution from storm drain discharges into Ballona Creek and Santa Monica Bay. The eastern portion of the City drains through the Centinela storm drain into the Sepulveda Channel of the City of Los Angeles and into Ballona Creek. In September 2001, City Council authorized an application and adopt a resolution in support of the application for $750,000 in grant funds to install urban runoff BMPs in the Centinela Storm Drain. The City?s application was approved in October. 1 Discussion To access these grant funds, the City must execute a contract with the Board. The grant funds will be used to design and install one of two 2-stage urban runoff treatment rdrd chambers, one at Pico Boulevard and 33 Street and one at Pearl and 33 Streets for a total cost of $1.7 million. In further support of this project, the City has already received a second grant of $500,000 from the state Coastal Conservancy. Staff is soliciting an additional grant from state Proposition 13 proceeds to complete the remaining funding needs ($450,000) for both elements of the project. Budget/Fiscal Impact The City is required to provide a minimum of 15% in matching funds or $112,500, which staff anticipates will come from in-kind services and other grants the City is currently seeking. It is necessary to establish a revenue budget of $750,000 in line item account 20662.406650 to receive the funds and appropriate the same amount in expenditure line item account C20079702.589000. If the proposed agreement is executed between the Board and City, staff will return to Council requesting the approval of contracts with one or more contractors to complete the project and related budget changes if necessary. Recommendation Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with the California Integrated Waste Board to accept a $750,000 grant for the installation of a pollution prevention system at either Pico Boulevard and 2 rdrd 33 Street or Pearl and 33 Streets to reduce polluted dry weather urban runoff flows that may enter Santa Monica Bay via Ballona Creek, and approve the necessary budget changes specified in the Budget/Fiscal Impact Section. Prepared by: Craig Perkins, Director, Environmental and Public Works Management Brian Johnson, Manager, Environmental Programs Division Neal Shapiro, Senior Environmental Analyst, Water Resources Section 3