sr-051011-3gCity Council Meeting: May 10, 2011
Agenda Item:J""G
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Charnock Brine Disposal
Recommended Action
Staff recommends that the City Council appropriate $5,022,887 from the Charnock
Fund to the FY2010-11 operating budget (Water Fund) for the FY2010-11 disposal of
brine water from the Arcadia Water Treatment Plant.
Executive Summary
Brine water is a bi-product of the water treatment process at the Arcadia Water
Treatment Plant. Brine water must be discharged into the sanitary sewer per regulatory
standards: Staff has evaluated disposal options and determined that discharging into
the City of Santa Monica's sanitary sewer system is the most cost effective, long-term
disposal option.. Currently, brine water is discharged into the City of Los Angeles
sanitary sewer adjacent to the Arcadia facility. Staff anticipated that brine water would
be discharged at this location for up to two years while a connection to the City of Santa
Monica's sanitary sewer system was completed; however, the connection was
completed in March 2011 ahead of schedule. Therefore, staff requests an appropriation
of funds into the FY2010-11 operating budget in order to pay the FY2010-11 fees of
$6,712,193 associated with brine water discharge to the City of Santa Monica's sanitary
sewer. Funds are available in the Charnock Fund.
Background
In 1999, an Agreement between the City of Los Angeles and the City of Santa Monica
for the Conveyance, Treatment, and Disposal of Wastewater (Contract 7473 C.CS) was
executed. Under this agreement, the City pays the City of Los Angeles for wastewater
treatment and disposal. On May 25, 2010, City Council authorized the City Manager to
negotiate and execute an Agreement (Brine Agreement) with the City of Los Angeles
Bureau of Sanitation for the disposal of brine water from the Arcadia Water Treatment
Plant into the City of Los Angeles' sanitary sewer system for up to two years in an
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amount not to exceed $5,000,000. The Charnock Well Field Restoration project was
substantially completed in December 2010. An Industrial Waste Discharge permit was
secured, fees were paid- per the terms of the Brine Agreement and discharge of the
brine water to the City of Los Angeles's sanitary sewer began.
Discussion
The water treatment process at the Arcadia Water Treatment Plant utilizes reverse
osmosis to remove contaminants and soften the water prior to distribution into the City's
water supply system. The treatment plant has the capacity to produce approximately
8.5 million gallons of drinking water while generating 1.5 million gallons of brine water
per day: The brine water cohtains high concentrations of minerals and contaminants
and it must be disposed in accordance with regulatory standards. City staff evaluated
several options for the long term disposal of brine water. To meet regulatory standards,
the brine water must be discharged to a sanitary sewer system for advanced treatment
at the Hyperion Waste Water Treatment Plant. Brine water can be discharged directly
from the water treatment plant to an existing City of Los Angeles sanitary sewer
adjacent to the facility or conveyed through a pipeline and discharged to the City of
Santa Monica's sanitary sewer.
City staff evaluated the viability of disposing brine water into the City of Santa Monica's
sanitary sewer system utilizing an existing unused water pipe. This water pipe was
previously used to supply salt water from two City wells located on the beach near
Bicknell Avenue to the Arcadia Water Treatment Plant as part of the drinking water
softening process. The existing pipeline was evaluated and found to be in .good
condition. To utilize this pipeline, a new connection to the sewer system was
constructed near 20th Street and Broadway Avenue as part of the Charnock Well Field
Restoration project. The connection was completed in March 2011 allowing the
discharge of brine water to Santa Monica's sewer to commence ahead of schedule.
The City of Los Angeles Bureau of Sanitation agreed to assess all costs associated with
brine discharge into their sewer per the Brine Agreement, as if the brine water was
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being discharged into the City of Santa Monica's sewer since plant start-up in
December 2010.
Brine water discharge to the City of Los Angeles sanitary sewer system is regulated by
an Industrial Waste Discharge Permit. The cost to dispose of approximately 1.5 million
gallons per day of brine water into the City of Los Angeles' sewer system consists of
two components: 1) sewer facility capacity fee; and 2) sewer volume discharge fee.
The sewer facility capacity fee, aone-time fee for purchasing capacity in the system in
perpetuity, is $4.4 million. The sewer volume discharge fee is $1.8 million per year
based on the estimated volume of brine water discharge. The cost to dispose of the
brine water into the City of Santa Monica's sewer system consists of the same two
components; however, the fee structure is based on the existing Agreement for the
Conveyance, Treatment, and Disposal of Wastewater between the City of Santa Monica
and City of Los Angeles. Per this Agreement, the sewer facility capacity can be
purchased in perpetuityfor a one-time fee of $6.1 million and an annual sewer volume
discharge fee of $900,000 based on the estimated volume of brine water discharge.
Brine water discharge will be necessary to produce drinking water for the foreseeable
future. Therefore, disposal of the brine water into the City of Santa Monica's sanitary
sewer is the most cost effective, as illustrated in the chart below.
..
City of Los Angeles Sewer Line
Capacity Charge $4.4 million (one-time fee)
Volume Charge $g.0 million ($1.8M/year x 5 years)
Total $13.4 million
City of Santa Monica Sewer Line
Capacity Charge $6.1 million (one-time fee)
Volume Charge $4.5 million ($900lVyear x 5 years)
Total $10.6 million
City of Los Angeles $22.4 million
City of Santa Monica $15.1 million
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Financial Impacts & Budget Actions
As part of the FY2010-11 budget, staff appropriated $1,689,306 for brine discharge.
The Sewer Facilities Charge fee was anticipated to be due to the City of Los Angeles in
FY2011-12; and, therefore, not included in the FY2010-11 budget. Since the connection
to Santa Monica's sanitary sewer was completed ahead of schedule, the estimated cost
to dispose of brine water for FY2010-11 is $6,712,193. An additional appropriation of
$5,022,887 is required from the Charnock Fund to account number 05673.555430. The
on-going cost for brine water disposal is anticipated to be approximately $900,000 per
year. Appropriations for brine disposal in future years will be include in annual
operating budgets: It is anticipated that future brine water disposal costs will be funded
by the Water Fund.
Prepared by: Mark Cuneo, Principal Civil Engineer
Approved:
Martin Pastucha
Director of Public Works
Forwarded to Council:
`' -
Rod Gould
City Manager
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