Loading...
SR-04-24-2012-3Era lama City of City Council Report Santa Monica" City Council Meeting: April 24, 2012 Agenda Item: -3- To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Execute a Cost Sharing Memorandum of Agreement for the Santa Monica Bay Beaches Bacterial Total Maximum Daily Load Implementation Plan with the City of Los Angeles Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a Memorandum of Agreement with the City of Los Angeles to implement the Stage One Projects in the Santa Monica Bay Beaches Bacterial Total Maximum Daily Load (TMDL) Implementation Plan in the amount of $4,000,000. 2. Authorize the budget changes as outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary The Santa Monica Bay Beaches Wet Weather Bacterial Total Maximum Daily Load (Bacterial TMDL) was established by the Regional Water Quality Control Board (RWQCB) to protect the Santa Monica Bay from elevated bacterial levels caused by storm water discharge. To address the requirements of the Bacterial TMDL, the cities of Santa Monica, Los Angeles, and other agencies jointly submitted an implementation plan (Plan) listing runoff management projects and strategies to be applied throughout the watershed at a cost shared by the agencies. The Plan cost was estimated to be $30M with Santa Monica's cost share being $1.98M. A quantitative analysis required by the RWQCB resulted in a larger drainage area needing treatment in order to achieve the TMDL compliance standards, which resulted in a Plan cost increase to $86M. Santa Monica's share of the costs for implementation of the revised Plan is $4,000,000. Funds in the amount of $1,000,000 are available in the Clean Beaches and Ocean Parcel Tax (CBOPT) Fund. Staff recommends that City Council approve a loan in the amount of $3,000,000 from the Wastewater Fund towards the cost of implementation of the Plan (to be paid back over 20 years). 1 Background The federal Clean Water Act (CWA) requires the RWQCB to develop water quality standards to protect the beneficial uses of water bodies in their respective regions. The Bacterial TMDL was established in June 2003 to limit bacterial levels in the Santa Monica Bay. The Bacterial TMDL combined municipalities into jurisdictional groups (JG) based on subwatershed location and offered an integrated water resources approach as a compliance strategy. This approach takes a holistic view of regional water resources management. The City of Santa Monica participated in the development of the Plan for what is referred to as JG 2 and 3. JG 2 and 3 represent watershed areas shared by the cities of Santa Monica, Los Angeles, El Segundo, the California Department of Transportation (Caltrans), and the County of Los Angeles. The final Plan was submitted to the RWQCB on July 15, 2005. The Plan identifies the projects and activities that each agency will undertake over the implementation period in order to meet the Bacterial TMDL standards. Previous Council Actions On July 8, 2003, Council authorized the City Manager to enter into a Memorandum of Understanding with neighboring agencies to develop the Plan for compliance with the Bacterial TMDL. On July 12, 2005, Council approved the Plan for submittal to the RWQCB. On April 24, 2007, Council authorized the City Manager to enter into a Memorandum of Agreement with neighboring agencies to share implementation costs and approved annual payments of $283,195 for seven years totaling $1,982,365. On January 26, 2010, Council adopted the Measure V Five Year capital improvement program, which included a contribution to the Plan of $4,000,000 paid over twenty years to implement runoff management projects. 2 Discussion The original cost for projects in the Plan was $30,000,000. Based on the City's land area within JG 2 and 3 and cost of its own projects, the City of Santa Monica's cost share was estimated at $2,000,000. At its April 6, 2006 meeting the RWQCB requested the responsible agencies for JG 2 and 3 to submit a quantitative analysis supporting the ability of the Plan to meet the compliance requirements of the Bacterial TMDL. A quantitative analysis was submitted in November 2007. Data from the analysis prompted an overall Plan cost increase to $86,000,000 from $30 million and subsequently an increase to the City's cost share. The currently adopted Measure V Five Year Plan budgets over $200,000 a year plus interest for payment towards the Plan costs, not to exceed $4,000,000. Staff recommends that the City avoid paying interest to an outside agency and complete its cost obligation for the Plan by making two annual payments of $2,000,000 to the City of Los Angeles. These payments would be possible with a loan from the Wastewater Fund in the amount of $3,000,000. The Wastewater Fund would be reimbursed over 20 years through annual installments from future funds generated by the CBOPT. The CBOPT is a tax measure approved by Santa Monica voters in November 2006 to fund the implementation of the City's Watershed Management Plan. The tax is assessed on parcels in perpetuity. In addition to the watershed -wide benefits, this monetary contribution also directly benefits storm water quality in Santa Monica. One of the projects to be constructed by the City of Los Angeles, the Penmar Water Quality and Runoff Reuse Project, will capture urban runoff from an 843 -acre drainage area in Santa Monica. This captured runoff will be either diverted to the sanitary sewer or treated for use in irrigation. The end result is a reduction in runoff discharged to the Santa Monica Bay and a reduced dependency on potable water for irrigation purposes. Runoff could potentially be reduced by 1.5 million cubic feet during each storm event. 9 Next Steps If Council approves the $4,000,000 contribution to the Plan, a Memorandum of Agreement would be executed and payments would be made to the City of Los Angeles in June of 2012 and June of 2013. The CBOPT Fund would make annual payments to the Wastewater Fund starting in July 2012 until the loan is fully paid in July 2032. Financial Impacts & Budget Actions The City's cost share for implementation of the Plan is $4,000,000. Funds in the amount of $1,000,000 are available in the following accounts: Account Source of Funding Amount 0066024.589000 J2 /J3 Implementation $439,000 M060790.589000 Countywide / Regional Urban Runoff Projects $561,000 TOTAL $1,000,000 A loan in the amount of $3,000,000 is requested from the Wastewater Fund to account C066024.589000. This loan will be repaid over 20 years at 4% fixed interest using future CBOPT funds. Budget authority for repayment of the Wastewater Fund loan for subsequent years will be requested in each budget cycle for Council approval. Prepared by: Rick Valte, P.E., Watershed Program Manager Approved: Forwarded to Council: Martin Pastucha Roould Director of Public Works City Manager 112 Reference Contract No. 9574 (CCS).