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SR 08-14-2018 13D 13.D August 14, 2018 Council Meeting: August 14, 2018 Santa Monica, California 1 of 1 CITY CLERK’S OFFICE - MEMORANDUM To: Mayor and City Council From: Denise Anderson-Warren, City Clerk, Records & Elections Services Department Date: August 14, 2018 13.D Request of Mayor Pro Tem Davis, Councilmembers McKeown and O'Day that the City Council endorse the Safe Clean Water Program ballot measure that the Los Angeles County Board of Supervisors has placed before the voters on November 6, 2018. The measure would generate approximately $300 Million by implementing a parcel tax of 2.5 cents per square foot of impermeable surface area on private property in the LA County Flood Control District. Proceeds would be used to protect coastal waters and beaches from trash and contaminants in stormwater, to recapture billions of gallons of stormwater that currently are lost, and require strict community oversight to ensure that local monies stay local. Credits for property owners who have installed stormwater-capture systems would be available. Qualifying low-income seniors and non-profit organizations would be eligible for exemption. An information sheet is attached. Program Overview1 The Safe, Clean Water Program will implement stormwater projects and programs to improve water quality, increase water supply, and invest in communities. It generates new revenue to help cities comply with the Clean Water Act, provides resources to develop a skilled local workforce, creates greener schools, parks and wetlands, and increases public access to natural areas. The program will fund the construction and maintenance of projects that: 1. Help cities meet their Clean Water Act obligations to clean stormwater 2. Protect public health by cleaning stormwater of pollution and contamination 3. Safeguard marine and other wildlife from trash and contaminants in runoff 4. Mitigate the effects of severe drought by increasing local water supply 5. Update infrastructure to capture and treat more stormwater Program Principles „ Promote equity and inclusion for all communities in LA County „ Leverage other funding sources to maximize return on investment „ Engage stakeholders throughout the region in developing projects „ Invest in local job training and development „ Provide multiple benefits – for instance, improving water quality while managing flood risk Funding Mechanism This program is funded through a parcel tax of 2.5 cents per square foot of impermeable area, to generate just over $300 million per year. The tax will be levied on private properties in cities and unincorporated areas within the LA County Flood Control District. The tax is based on a property’s total area of paved or impermeable surface, where rain cannot infiltrate the ground and instead runs off as stormwater. Publicly owned parcels, including public schools, are exempt under state law, and non-profits are eligible for exemption. Credit and rebate programs to reward property owners who have made stormwater improvements on their properties are currently under discussion. County of Los Angeles lacounty.gov What is the Safe, Clean Water Program? 1The information described on this document reflects the Draft Safe, Clean Water Program Elements currently under consideration by the LA County Department of Public Works and undergoing review by stakeholders and the public. The Board of Supervisors is expected to consider adoption of an ordinance to finalize Program details at their meeting on July 10, 2018. Image: Dominguez Gap Wetlands Funding Breakdown Municipal Program — 40% of program funds are returned directly to cities and unincorporated areas. „ Local returns are proportionate to what parcels within a city or municipality paid into the program. „ The program maximizes flexibility for use of municipal funds toward stormwater compliance. „ Cities and municipalities can use up to 30% of their local return revenues to pay for the operation and maintenance of existing projects. „ There are no labor provisions (including local worker hires or PLA’s) placed on municipal program dollars. „ The Department of Public Works is available to help design, build, and maintain projects for cities who lack expertise or the capacity to do so. Regional Program — 50% of program funds will be used for watershed-based projects with regional benefits. „ Revenues are returned proportionally to each of nine Watershed areas (see map), with local Steering Committees comprised mostly of municipalities or municipal agencies that allocate project funding. „ The Regional Program funds three subprograms: Infrastructure Program to implement projects; Technical Resource Program to build capacity through Watershed Coordinators; and Scientific Studies Program to support scientific analysis. „ Projects funded in the Regional Program must be part of a water quality plan, like an EWMP. Cities are still the gatekeepers of these plans, and will be able to determine which projects they want to build. „ Within each watershed, funding returns proportionately to each municipality (over 10 years), so even small cities will be assured their fair share back to meet compliance obligations and provide community benefits. „ Revenues generated by disadvantaged communities are returned to those communities, plus an additional sum to jumpstart investment. District Program — 10% of program funds will go to the LA County Flood Control District for administration, programs and projects. „ Funds will go toward developing programs in concert with stakeholders and community groups. „ Funding can be used for school programming and curriculum, local workforce job training, and public education programs (individualized for different communities). „ Flood Control District will provide overall administrative services of programs and projects. County of Los Angeles lacounty.gov Image: Watershed Areas for the Safe, Clean Water Regional Program 50% Municipal Program 40% District Program 10% www.safecleanwaterla.org Safe, Clean Water Program- Key Points for Santa Monica  40% of funds generated from the Safe, Clean Water Program are returned directly to municipalities, based on their tax contribution. This local return money can be used flexibly, with the only requirement that the money be used to improve water quality. Up to 30% of the local return money can be spent on operations and maintenance of existing facilities and/or programs, such as Santa Monica’s SMURRF facility. Santa Monica’s wastewater recycling facility currently in the pre-construction stage can make use of local return dollars, as can any new projects that would be constructed pursuant to Santa Monica’s MS4 stormwater permit. It is estimated that Santa Monica’s annual local return will be approximately $830,000, less any credits given to landowners for existing stormwater management activities onsite.  50% of funds generated from the Safe, Clean Water Program are returned proportionately based on contribution to one of nine watershed areas. Santa Monica is located within the Central Santa Monica Bay Watershed Area. Within each watershed area, each city receives a proportionate share of the regional funds for projects that provide a benefit to that city. Santa Monica will be able to apply regional money toward any number of proposed multi-benefit water infrastructure projects, including new stormwater capture cistern projects and Santa Monica’s proposed wastewater recycling project. Additionally, any multi-benefit project on Santa Monica’s EWMP project list will be eligible for regional program funds.