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SR 01-09-2018 3B City Council Report City Council Meeting: January 9, 2018 Agenda Item: 3.B 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Authorization for final payment to the City of Los Angeles for the Cost-sharing Monitoring Plan Memorandum of Agreement for the Santa Monica Bay Beaches Bacterial Total Maximum Daily Load Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to approve the cost-share payment in the amount of $75,485.30, including $66,888.62 for Fiscal Year 2016-17 and exceedances of $8,596.68 for Fiscal Year 2015-16, to the City of Los Angeles to comply with the cost-share monitoring plan with the Los Angeles Regional Water Quality Control Board’s Bacterial Total Maximum Daily Load requirements for the Santa Monica Bay Beaches. 2. Authorize budget changes as outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary As a municipal agency within the boundaries of the National Pollutant Discharge Elimination System (NPDES) permit system of Los Angeles County, the City of Santa Monica is part of a regional partnership of cities responsible for improving water quality for Santa Monica Bay. As a partner, the City is obligated to comply with requirements of a Total Maximum Daily Load (TMDL) to reduce pollution from urban runoff into the Bay. A TMDL requires a monitoring plan to collect data on water quality prior to and after a TMDL is implemented to demonstrate compliance with water quality objectives. As a member of the jurisdiction that drains into the Bay watershed, the City is responsible to share the costs of implementing a water quality monitoring plan for the Santa Monica Bay Beaches Bacterial TMDL that has been established for this watershed. Thus, the City has had a three-year renewable Memorandum of Agreement (MOA) with the City of Los Angeles since 2003 to share these costs. 2 of 4 The most recent Santa Monica Bay Beaches Bacterial TMDL cost-sharing MOA 2013- 17 expired on June 30, 2017. Unlike past three-year MOAs, the 2013 MOA was a four- year term. However, when Council approved the 2013 MOA, funds were encumbered to cover the costs for the first three years, but not the fourth year. Therefore, staff is asking Council to approve the recommended action to increase the budget, and allow the City to pay the charges incurred during the fourth year (FY 16-17) of the MOA. The one-year FY 16-17 cost, to be paid during FY 17-18 from the Clean Beaches and Ocean Parcel Tax Fund, is not to exceed $75,485.30. Background The Federal Clean Water Act (CWA) requires the California Regional Water Quality Control Board, Los Angeles Region (Board), to develop water quality standards that identify beneficial uses, and criteria to protect beneficial uses, for each water body found within its region. Beneficial uses include swimming, fishing, drinking water, navigability, and wildlife habitats and reproduction. Section 303(d) of the CWA requires states to prepare a list of water bodies that do not meet water quality standards and establish for each of these water bodies pollutant load allocations known as total maximum daily loads (TMDLs), which will ensure attainment of water quality standards. A TMDL represents an amount of pollution that can be released by anthropogenic and natural sources of a watershed into a specific water body without causing a decline in water quality and beneficial uses. The Santa Monica Bay watershed is listed on California’s 2006 Section 303(d) list due to impairments by bacteria, and its beaches are subject to postings and closures due to elevated concentrations of this pollutant. The Board adopted bacterial TMDLs for wet and dry weather runoff into the Bay in 2003. These TMDLs regulate the amount of bacteria found in discharges of runoff from the cities within the Bay watershed. In accordance with the Bacterial TMDLs, the City of Los Angeles submitted a Coordinated Monitoring Plan (CMP) for compliance with the TMDLs on behalf of the agencies within the Bay watershed. The City of Los Angeles currently performs all 3 of 4 required monitoring and reporting to the Board, and annually invoices the City of Santa Monica for its share of monitoring costs. The City Council approved the initial Memorandum of Agreement (MOA) for cost- sharing bacterial monitoring on July 8, 2003 (Attachment A). The last MOA renewal was approved by Council on August 13, 2013, and included a three-year term and a provision allowing for a fourth year (Attachment B). However, when Council approved that agreement, funds were budgeted to cover the costs for the first three years, but not for the fourth year. Staff inadvertently failed to allocate the fourth year funds during the 2013 staff report process. Discussion On November 28, 2012, the California Regional Water Quality Control Board, Los Angeles Region approved a new National Pollutant Discharge Elimination System permit with additional monitoring requirements beyond the previous permit. Though a new cost-sharing MOA was approved by City Council on August 13, 2013, the City only budgeted for the three-year term of the MOA. Article V, Section 4 states, “This MOA shall continue on a month to month basis after expiration date as stated in Article V, Section 1 . . . not to exceed 12 months.” The City of Los Angeles sent the City an invoice for $75,485.30 for the month-to-month term covering FY 2016-17, which includes $8,596.68 for exceedance monitoring in FY15-16. Staff is requesting to appropriate the necessary funds to pay this invoice. A new cost-sharing MOA was approved by the Santa Monica City Council July 11, 2017, for FY 17-18 and beyond; this MOA is going through the signature phase, at this time (1/2/2018) with the City of Los Angeles, before it can be executed (Attachment C). Financial Impacts and Budget Actions Santa Monica’s share of the monitoring costs for the fourth year of the Memorandum of Agreement is not to exceed $75,485.30, which includes additional costs for exceedance monitoring. Payment of the invoice requires a FY 2017-18 appropriation of $75,486 to the Clean Beaches and Ocean Parcel Tax Fund (account 06402.555170). 4 of 4 Prepared By: Neal Shapiro, Senior Sustainability Analyst Approved Forwarded to Council Attachments: A. July 8, 2003 Staff Report B. August 13, 2013 Staff Report C. July 11, 2017 Staff Report