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sr-110811-3cCity of City Council Report Santa Monica City Council Meeting: November 8, 2011 Agenda Item: 3 -C To: Mayor and City Council From: Dean Kubani, Director, Office of Sustainability and the Environment Subject: Resolution Regarding Proposition 84 grant agreements for urban runoff water quality improvement projects Recommended Action Staff recommends that City Council: 1. Authorize the City Manager to accept two grants awarded by the State of California for the In -Line Storm Drain Urban Runoff Treatment Project in the amount of $300,000 and for the 16th Street Watershed Marine Park Urban Runoff Project in the amount of $1,013,085. 2. Adopt the attached resolution authorizing the City Manager to negotiate and execute two grant agreements with the State of California to support the In- Line Storm Drain Urban Runoff Treatment Project and the 16th Street Watershed Marine Park Urban Runoff Use Project; and 3. Authorize budget changes as outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary Santa Monica received $300,000 from Proposition 84 for the In -Line Storm Drain urban runoff treatment project and $1,013,085 from Proposition 84 for the 16th Street Watershed Marine Park urban runoff project. Under the terms of the grants, the City must adopt a resolution to accept the grants and appoint the City Manager to execute grant agreements. Both projects will use low impact development strategies to harvest dry and wet weather runoff for treatment and use, keep a water pollution source out of the Bay, and implement strategies found in the City's Watershed Management and 5- Year Low Impact Development Plans. Background Federal, state and local regulations require the City 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 evaluated for stormwater management opportunities. Instead of end -of -pipe treat and discharge solutions, the City is focusing on upstream solutions at individual and public parcels, and at various locations along the storm drain system. The watershed approach is considered a best management practice (BMP) and promotes as guiding principles the reduction of runoff volume and the prevention of urban runoff pollution. Discussion Proposition 84, The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, allocated $18 million to the Santa Monica Bay Restoration Commission (SMBRC) for projects that protect Santa Monica Bay beaches and coastal waters. In the most recent application process for Proposition 84 funds, the City's applications for an In -Line Storm Drain project and for a 16`h Street Watershed Marine Park project were approved for funding. Both projects are intended to help restore water quality and maintain the beneficial uses of Santa Monica Bay. In addition, the projects will assist the City in complying with regulatory requirements imposed by the National Pollution Discharge Elimination System (NPDES) and all Total Maximum Daily Loads (TMDL) mandates. In -Line Storm Drain Urban Runoff Treatment Demonstration Project This project involves the installation and monitoring of two sets of two separate storm drain treatment BMP retrofit systems (at a total of four locations) strategically located to capture, filter, clean and infiltrate polluted dry weather and stormwater runoff. The first system will be a retrofit of an existing in -line curb - facing catch basin to divert daily urban runoff and low flow stormwater runoff to a two -stage pre- treatment and infiltration BMP system for percolation into sub - surface soils. The second system will be a retrofit of an existing in- street storm drain manhole to divert daily urban runoff and low flow stormwater to a similar 2 -stage pre- treatment and infiltration BMP system for percolation. These systems will be monitored to evaluate how effective they treat runoff and remove pollutants, and help meet the City's water quality improvement goals. After evaluating the systems, the City will select the most effective treatment design for use in future City -wide installations. The City of Santa Monica was awarded a Proposition 84 grant of $300,000 for this project. The grant funds will cover approximately 67% of the estimated total project cost of $450,000. The City will pay for the remainder of the project using Measure V Clean Beaches and Oceans Parcel Tax Act funds 16th Street Watershed Marine Park Urban Runoff Use Project The collection and primary treatment phase of the project is being built by the City of Los Angeles at the Penmar Recreational Center using Proposition O funds and a Proposition 84 grant. Runoff from the Rose Avenue storm drain will be diverted into a primary treatment system, after which the treated water will be stored in an underground cistern under one of the playing fields. A disinfection system is also being constructed which will prepare the water for irrigation applications. The City of Santa Monica was awarded a Proposition 84 grant of $1,013,085 to construct a pipeline from the Penmar cistern to Marine Park, where the disinfected water will be integrated into the Park's irrigation system and used to irrigate the Marine Park playing fields and other landscaping. The grant funds will cover approximately 50% of the estimated total project cost of $2,000,222. The City will pay for the remainder of the project using Measure V, Clean Beaches and Oceans Parcel Tax Act funds. Besides removing a water pollution source, this project will help the City meets its 2020 water self- sufficiency goal by providing a local water resource to replace potable water, a portion of which is imported and contributes to the City's water gap. Financial Impacts & Budget Actions Award of the $1,313,085 from the State Water Resources Control Board for two water quality improvement projects requires the following FY2011 -13 budget changes: The following budget changes are needed to record receipt of the grant awards and make them available for program use: In -line Storm Drain A gil on Amount i Acwuht Establish Revenue Budget i $ 300,000 20226.404030 Appropriate Expenditure IS 300,000 IC2139031 .589000 Estimated Cash Match $ 26,000 C066021589000 Marine Park Action Amount Account Establish Revenue Budget $ 1,013,085 20226.404010 Appropriate Expenditure $ 1,013,085 C209032.589000 Estimated Cash Match $ 26,000 C066021589000 The grants require a 15% local match, which will be met through appropriated funds In the Measure V Clean Beach accounts: No Action Required - Estimated Cash Match $ 41,000 C069010.589000 No Action Required - Estimated Cash Match $ 26,000 C066021589000 No Action Required - Estimated Cash Match $ 200,000 C066022.589000 No Action Required - Estimated Cash Match $ 100,000 M060790.589000 Additional funds to cover the Clty's portion of the project costs are included in the following accounts: No Action Required 1 $ 83,000 JC066023. 589000 No Action Required 1 $ 461,000 I M060790.589000 No Action Required 1 $ 139,000 10069010.589110 Prepared By: Neal Shapiro, Senior Administrative Analyst roved: Dean Kubani Director, Office of Sustainability and the Environment Attachment 1: Resolution Forwarded to Council: Rod Gould City Manager Reference Resolution No. 10630 (CCS) and Contract Nos. 9502 (CCS) and 9503 (CCS)