HomeMy WebLinkAbout2017-06-13 - AGENDA REPORTS - PROPOSED PURCHASE OF PERMANENT SEWER CONNECTION (2)Agenda Item: 10
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: 1
P441)
DATE: June 13, 2017
SUBJECT: PROPOSED PURCHASE OF PERMANENT SEWER CONNECTION
DEPARTMENT: Neighborhood Services
PRESENTER: Kevin Tonoian
RECOMMENDED ACTION
City Council:
Authorize and approve a 20 -year agreement with the Los Angeles County Sanitation District
in an amount not to exceed $631,373 for the purchase of a permanent sewer connection to
dispose of nuisance groundwater originating from the Shangri-La community.
2. Authorize an ongoing appropriation of $31,568 from Fund 357 to Account No. 12516-
5161.001 (LMD Zone T31) effective Fiscal Year (FY) 2017-18.
3. Authorize the City Manager or designee to execute all contracts and associated documents,
contingent upon the appropriation of funds by the City Council in the annual budget for such
Fiscal Year, and execute all documents subject to City Attorney approval.
BACKGROUND
This action recommends the purchase of a permanent connection to the Los Angeles County
Sanitation District (LACSD) for the disposal of nuisance groundwater, originating from
Drainage Benefit Assessment Area (DBAA) 18.
In 1986, the developer of the Shangri-La community was required by LACSD to install
groundwater pumps on Nathan Hill Drive (DBAA 6) and Bakerton Avenue (DBAA 18) to
maintain slope stability, which sent the groundwater to the Santa Clara River via the flood
control channel. While groundwater coming from Shangri-La is safe for human consumption,
the water naturally contains high levels of chloride, from 204-278 milligrams per liter. This
exceeds the 100 milligram per liter limit allowed by the State of California for discharge into the
river, and although the City of Santa Clarita (City) disagreed, the City was charged with water
quality fines.
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To address the State's water quality concerns, in 2010 the City secured a temporary sewer
connection permit from the LACSD and re -directed Shangri-La nuisance water to the sewer.
Then, in 2014, the City purchased a permanent sewer connection for DBAA 6. Due to the
minimal number of gallons discharged from DBAA 6, less than 2,000 gallons per day, the one-
time cost for this permanent connection totaled approximately $7,500.
A long-term decision on how to dispose of nuisance water originating from DBAA 18 must be
made prior to June 30, 2017, as the City's temporary sewer permit has expired. In contrast to
DBAA 6, this pump station discharges approximately 37,000 gallons of water to the sewer
system each day. Based on this volume, the one-time cost for a permanent sewer connection is
$413,989.
Several solutions to manage this nuisance water have been considered by staff, including
constructing an on-site storage tank and using this groundwater for irrigation purposes.
However, in addition to being not financially viable, this option requires a Waste Discharge
Requirements Permit from the Los Angeles Regional Water Quality Control Board (Regional
Board). Given the high levels of chloride, it is unlikely that the Regional Board would issue a
permit for this use.
An additional option considered by staff was a potential ecological demonstration project at
Discovery Park. This concept, proposed by a third party, encompassed the creation of an
ecological solution to remove chlorides from Shangri-La groundwater. This concept combined
the use of a standard reverse -osmosis (RO) system and a prototype technology to reduce
chlorides and facilitate groundwater recharge. However, the third -party firm was unable to
provide empirical evidence to conclusively demonstrate the prototype technology would be
effective to remove chlorides, and was also deemed not financially viable.
Based on staffs analysis, the financially superior option is to purchase a permanent sewer
connection from the LACSD. This can be purchased over 20 years and, inclusive of financing,
will cost $631,372. In addition, the LACSD will allow the City to withdraw at any time during
the 20 year agreement period should a more preferred and less costly option to reuse this
groundwater become available.
The 446 residential property owners in Shangri-La each pay an annual special assessment of
$159 to support operational costs for their DBAA. This assessment was not calculated to
forecast potential costs associated with meeting water quality standards or connecting to the
sewer system. The current special assessment is not sufficient to fully cover all costs, resulting
in DBAA 6 and 18 having a combined deficit of $414,915.
As the same group of property owners that benefit from, and financially contribute to, DBAA 6
and 18 are also located within Landscape Maintenance District (LMD) Zone T31, it has been
determined LMD revenues may be utilized to fund operating and capital costs for these DBAAs.
The strategy below will allow the City to manage Shangri-La's LMD and DBAAs in a
financially responsible manner and minimize fiscal impacts to property owners.
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1. LMD Zone T31 funds in the amount of $149,940 have been identified for appropriation
in the proposed FY 2017-18 budget to fund operational expenditures for DBAA 6 and 18.
2. Approval of an ongoing appropriation in the amount of $31,568 from Fund 357 to
Account No. 12516-5161.001 (LMD Zone T31) is proposed to finance the permanent
sewer connection. Pending Council approval, the first debt service payment to the
LACSD will be made on August 1, 2017.
3. DBAA 6 and 18 revenues will continue to be collected at the current rate of $159 per
year and used to pay down the deficits accumulated by the two drainage districts. Based
on staffs financial forecast, this approach will retire DBAA 6 and 18 deficits by Fiscal
Year 2022-23.
4. Upon retiring these deficits, staff will work with property owners to create anew special
assessment methodology that will consolidate the LMD and both DBAAs into one zone.
This individual zone will establish a lower annual assessment rate for all services and
incorporate a consumer price index escalator to allow costs to keep up with inflation.
This proposed action will not impact the level of LMD services property owners receive from the
City. Adequate zone reserves to cover all forecasted operational costs and future reserve needs
will continue to be available in the future. Further, the annual special assessment each
residential property owner pays for LMD services will be reduced by $25 beginning in FY 2017-
18.
Lastly, staff has met with the four Homeowner Associations in Shangri- La and mailed
informative letters to all property owners outlining the recommended action.
ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
There is a fiscal impact of $631,373 associated with the approval of a 20 -year agreement
between the City and the LACSD for the purchase of a permanent sewer connection to dispose of
nuisance water originating from the Shangri-La community. Future annual debt service payments
of $31,568 will be contingent upon the appropriation of funds by the City Council.
ATTACHMENTS
Santa Clarita DBAA 18 (Bakerton Pump Station) Connection Fee
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COUNTY SANITATION DISTRICTS
OF LOS ANGELES COUNTY
1955 Workman Mill Road, Whittier, CA 90601.1400
Mailing Address: P.O. Box 4998, Whittier, CA 90607.4998
Telephone: (562) 6994411, FAX: (562) 699-5422
www.iocsd.org
May 15, 2017
Ms. Susan Lynch
City of Santa Clarity DBAA 18 (Bakerton Pump Station)
23920 Valencia Boulevard #300
Santa Clarita, CA 91355
Dear Ms. Lynch:
GRACE ROBINSON HYDE
Chief Engineer and General Manager
Wastewater Connection Fee, Surcharge Account Number 9244255, Permit Number 20525
Located at 27807 Bakerton Avenue, Santa Clarita. CA 91387
As of December 15, 1981, all new users of the sewerage system, as well as existing industrial users who increase
their historic wastewater discharge by more than 25 percent, are required to pay a connection fee to the Sanitation
Districts. This fee is based upon the quantity (flow) and the strength (chemical oxygen demand and suspended solids) of
the wastewater discharge. The connection fee is to be paid prior to the time the facility is actually connected to the sewer
or, in the case of expanding industrial facilities, at the time of increase in the wastewater discharge. Dischargers who
increase their wastewater discharge are required to pay a connection fee for the increased discharge only. Baseline
capacity for industrial dischargers (i.e., your company's existing connection fee capacity) is determined from the Districts'
paid surcharge records and is based on the highest annual average discharge made to the Districts between fiscal years
1976-77 and 1981-82 or from those industrial waste permits that accurately describe the wastewater discharge.
For the determination of connection fee capacity, the term "capacity unit" (CU) has been developed. A capacity
unit (CU) is the burden for proper wastewater disposal that a typical single-family home places on the sewerage system in
terms of wastewater flow and strength. As submitted with the Districts' letter of March 31, 2017, City of Santa Clarita
DBAA 18 (Bakernm Pump Station) has a baseline of 0.00 CU's. Review of the 2015-2016 fiscal year surcharge
statement indicates an actual wastewater discharge equivalent to 78.81 CU's. Payment for the difference of 78.81 CUs
above the current baseline is now due. At the current connection fee rate for Sanitation District No. 32 of $5,253.00 per
capacity unit, a payment of $363,422.62 is required (see attached invoice). To address this charge the following options
are available:
Option # 1
Return the Surcharge Copy of the enclosed invoice with full payment within 45 days of the date of this letter.
Payment received after this date will be subject to an immediate penalty of ten percent of the unpaid connection fee,
thereafter followed by a secondary penalty of one and one-half percent per month of the total of the delinquent
connection fee plus the ten percent penalty.
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City of Santa Clarice DBAA 18 (Bakerton Pump Station) -2- May 15, 2017
Option 02:
If City of Santa Clarita DBAA 18 (Bakerton Pump Station) wishes to enter an extended payment schedule to
satisfy these charges, please submit a request in writing with a minimum deposit often percent of the billed connection
fee. The request and deposit MUST BE RECEIVED within 45 days of the date of this letter. Failure to submit the above
mentioned documents within the 45 day period will result in automatic penalties and eliminates the extended payment
plan option.
If City of Santa Clarita DBAA 18 (Bakerron Pump Station) has any questions, please contact Tanya Garcia of the
Sanitation DistrictsSurcharge Section at (562) 908-4288, extension 2609.
Very truly yours,
for Sharie L. Pike
Revenue Collection Supervisor
SLP:tg
Enclosures
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COUNTY SANITATION DISTRICTS
GRACE ROBINSON HYDE OF LOS ANGELES COUNTY
Chief Engineer and 1955 Workman Mill Road P. 0. Box 4998
General Manager Whittier, California 90607-4998
(562)699.7411
INDUSTRIAL CONNECTION FEE
NOTICE OF CHARGES
Status As Of May 15, 2017
10.a
FOR DISTRICTS'
USE ONLY
Payment Received
Postmark Date I Date Received
Group No. I Received By
Account Number 9244255 Permit Number 20525
Company Name City of Santa Clarita DBAA 18 for
(Bakerton Pump Station) property 27807 Bakerton Avenue
23920 Valencia Boulevard #300 located Santa Clarita, CA 91387
Santa Clarita, CA 91387 at
Please return the green copy of this form with payment US Postmarked within 45 days of the date of
this invoice. Payment received after this date are considered delinquent and are subj ect to penalty and
interest penalty charges.
TOTAL CAPACITY USAGE AT SITE ................ 78.81 CU'S
LESS CREDIT ...................................... 0.00 CU'S
ADDITIONAL CAPACITY UNITS REQUIRED ........ 78.81 CU'S
COST PER CAPACITY UNIT FOR DISTRICT 05 ........ $5,253.00
AMOUNT PAID ....................................$50,566.31
TOTAL NOW DUE ............................... $363,422.62
Upon receipt and verification of payment (approximately three weeks), the total number of capacity
units at the above address will be 78.81 CU's.
C
Packe[ Pg. 90
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CAPACITY USAGE CALCULATION SHEET
(Lang Form 1 Outfall Surcharge CF Rate) Z
CREDIT/BASELINE:
Surcharge Data: Yes:
No:
Year.
COMMENTS:
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Company Name: City of Santa Clarita DBAA 18 (Bakerton Pump Station) By: Tanya Garcia Date: 5/15/201 U
Type of Industry: Groundwater Dewatering Slope Stabilization I.W. No. 20525 District No. 32
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Situs Address: 27807 Bakerton Ave. Santa Clarita, CA 91351
Z
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Mailing Address: 23920 Valencia Blvd., #300, Santa Clarita, CA 91355
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Previous IW Permit:
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Company Contact: Susan Lynch Tel No. (661)290-2208
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MPP No, 2803-023-124 Facility ID No. 9244255 TG: -4�551/�G2 -
SIC N0. (s) 9199 Change in SIC: Yes No .'
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New Connection Discharging["[ Current Discharger with New Connection O
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FISCAL YR: 20144015
Z
h'low= 13.55 MGY / 365 days/year x 1,000,000 = 37,123 gpd
Z
COD = 0.51 1000 lbs / 365 days/year x 1000 = 1.40 ppd
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SS = 0.08 100016s / 365 days/year x 1000 = 0.22 ppd
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PROPOSED DISCHARGE Flow (GPD) COD (PPD) SS (PPD)
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IW FLOW VOLUME -III
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COD=( god ) ( 8.34E-6 ) ( mg/I) 1.40
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53=( gpd) (8.342-6) ( mgtl) 022
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SANITARY =( 0 cmp)(IS GPD) 0
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COD=( 0 eap)(0.06430) 0.00
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SS=( 0 emp)(0.03J76) 0.00
00
COMBINED= 37,123 1.40 0.22
m
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CU's = ( 0.5498 ) ( 37,123 )t( 0.1849 )( 1.40 )+( 0.2653 ) ( 0.22u
_ ]8.81 CUs
260 1.22 0.59
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XYZ Effective Dale: July 1, 2006 Baseline Credit - 0.00 CUs
CC
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Rate Effective Date: July 1, 2016 Net Proposed Increase = ]8.81 CUs
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Strength data from: 2014-2015 Surcharge filings
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Established Baseline: = 0.00 x 25.49 % = 0.00 CU's (2)
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A Connection Fee is required if the Net Proposed Increase is greeter than 25.49 % of the Established Baseline.
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(1)>(2) Connection Fee Due = $5,253.00 /CU x 78.81 Clls = 5413,988.97
ym
(2)a(1) No Connection Fee Due
02
Previous Payment: Ciry ofSonm Clarimpaid$50,566.31 on 5/7/2009 at a prorated rate of8393.881CUor 5140 ofthe the?= 850,566.31
00
connection rate ofS3,151.00/CU Applicant hadrequeated m be permilledfor 5 years at that time.
Connection Fee Due = 5363,422.62
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CREDIT/BASELINE:
Surcharge Data: Yes:
No:
Year.
COMMENTS:
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Long Front:
Shaft Porta;
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Previous IW Permit:
Tax Assessors'Reeords:
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Water Bills:
Cmmection Fee Payment:
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10.a
COUNTY SANITATION DISTRICTS
OF LOS ANGELES COUNTY
1955 Workman Mill Road, Whittier, CA 90601-1400
Mailing Address: P.O. Box 4998, Whittier, CA 90607-4998 GRACE ROBINSON HYDE
Telephone: (562) 699-7411, FAX: (562) 699-5422 Chief Engineer and General Manager
www.locsd.org
May 15, 2017
Ms. Susan Lynch
City of Santa Clarita DBAA 18 (Bakerton Pump Station)
23920 Valencia Boulevard 4300
Santa Clarita, CA 91355
Dear Ms. Lynch:
Wastewater Treatment Surcharge Statement for Fiscal Year 2015-2016,
Facility ID Number 9244255, Industrial Waste Permit Number 20525
Located at 27807 Bakerton Avenue, Santa Clarita, CA 91387
The Districts previously notified your company of adjustments made as a result of an audit of the 2015-2016
fiscal year Long Form Surcharge Statement. The specifics of the audit were discussed in a letter dated March 31,
2017 accompanied by a Surcharge Statement which detailed the revised calculations. The adjustments discussed in
the above referenced letter remain unchanged and the refund, as detailed below, is being processed.
Fiscal Year 2015-2016
Surcharge Payable $ 15,068.46
Amount Paid $ 15,215.69
Penalty $ 0.00
Interest $ 0.00
Refund Due $ 14T23
The total amount of the refund to be forwarded to your company under separate cover is $147.23. If you have
any further questions, please contact Tanya Garcia at (562) 908-4288, extension 2609.
Very truly yours,
for Shwie L. Pike
Revenue Collection Supervisor
SLP:tg
Enclosures
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