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SR-505-004-02 EPWM:CP:BJ:NS/Prop40WilshireReport.doc Council Meeting: September 9, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Contract and Resolution with the State of California for a Proposition 40 Grant for the Wilshire Dry-Wet Weather Runoff Diversion and Best Management Practice Project Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a $980,000 grant contract and any amendments with the State Water Resources Control Board (Board) for an urban runoff best management practices treatment system, composed of two treatment devices, in the City?s Wilshire Boulevard storm drain system, and that the City Council also adopt a resolution required by the Board for purposes of entering into the contract with the City. Background Federal, state and local regulations and standards require the City of Santa Monica to reduce urban runoff pollution from storm drain discharges into the Santa Monica Bay. Recent changes in these regulations and standards have shifted the management strategy for urban runoff control from an end-of-pipe approach to a sustainable watershed approach, where the entire watershed or storm drainage area is considered. This watershed approach, called a Best Management Practice (BMP), promotes reduction and prevention of urban runoff pollution as guiding principles. 1 The City has adopted a watershed approach in managing its urban runoff flows through the storm drain system into the Bay. This approach is consistent with the City?s Sustainable City Program (SCP). The Wilshire Boulevard storm drain treatment project is one project that supports the principle of reducing and preventing urban runoff pollution. Discussion The City has submitted a number of grant applications for urban runoff pollution mitigation projects since the passage of Propositions 12, 13 and 40. Currently, the City has received one Proposition 12 grant for its Centinela Storm Drain Project and a Proposition 13 grant for its similar Montana Avenue Storm Drain Project. Staff continues to submit grant applications for additional funding cycles of these propositions to obtain necessary funds to install urban runoff mitigation projects in City storm drain outlets. The installation of the Wilshire Boulevard dry-wet weather treatment system (Project), composed of two standard structural treatment devices, will help protect the Santa Monica Bay watershed and help restore and protect the water quality and the environment, and maintain the beneficial uses of our State?s coastal waters, estuaries and bays. Ongoing maintenance, operation and monitoring costs associated with this project will be assumed within the Utilities Division Wastewater and Industrial Waste Section?s maintenance of effort budgets. In the event additional unanticipated long term costs are incurred, they will funded by the Storm Water Fund. Budget/Financial Impact 2 The State grant, which is a reimbursement grant, covers the construction costs. A revenue account has been set up in Account 20662.403900to receive the reimbursement funds, and the budget must be increased by $980,000. Funds of $980,000 need to be appropriated into expenditure account C20094904.589000. The implementation of the Project requires a 15% match. This match of $147,000 is anticipated to be satisfied via City-provided in-kind design and engineering services, monitoring, operation and maintenance by City stormwater staff, and $25,000 from the Stormwater System Improvements account (C34058804.589000). Recommendation Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to negotiate and execute a contract and any amendments with the State Water Resources Control Board for a $980,000 grant to construct an urban runoff best management practices treatment system in the City?s Wilshire Boulevard storm drain system, and make the appropriations and other budget actions as set forth in the Budget/Financial Section. Prepared by: Craig Perkins, Director, Environmental and Public Works Management Brian Johnson, Manager, Environmental Programs Division Neal Shapiro, Senior Administrative Analyst Attachment 1: Resolution (See Adopted Resolution No. 9886 (CCS) 3