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Home My WebLink About1993-06-22 - AGENDA REPORTS - STORM WATER UTILITY STUDY (2)AGENDA REPORT UNFINISHED BUSINESS DATE: June 22, 1993 City Manag Item to be SUBJECT: STORM WATER UTILITY FEASIBILITY STUDY George A. Caravalho DEPARTMENT: Community Development REQUEST Approve consultant contract for a storm water utility feasibility study. BACKGROUND The 1972 Federal Clean Water Act was amended by the Water Quality Act of 1987 to require the Environmental Protection Agency (EPA) to establish regulations for storm water/urban runoff discharge under the National Pollutant'Discharge Elimination System (NPDES). The California Regional Water Quality Control Board (CRWQCB) is the agency responsible for implementing these requirements within California. On June 18, 1990, the CRWQCB, Los Angeles region, Issued a permit (NPDES Permit No. LA0061654) specifying certain compliance activities for the various drainage basins In Los Angeles County. This permit requires that an extensive storm water quality monitoring program be designed, installed and maintained to measure and control pollutants in both dry -weather and wet -weather flows. Santa Clarita must begin our compliance activities by October 1993. The penalties for non-compllance can be up to $25,000 per day. In response to Council direction of June 8, 1993, staff has investigated various options to facilitate compliance and identify possible funding sources. to implement this new mandate. Staff Is recommending that the Council consider a feasibility study to form a storm water utility. This approach Is part of a national trend and is specifically authorized by State law (Revenue Bond Law of 1941, Government Code Section 54300 et seq) and essentially creates an enterprise operation similar to traditional water and sewer utilities with all properties assessed a fee based upon their contribution to flows and pollutants in the storm water system. There are many questions that need to be answered before a specific proposal can be developed. These questions include: 1) What will compliance with the program cost on an initial and annual basis? 2) What are the required staff resources? 3) How can a storm water utility be implemented in Santa Clarlta? 4) What Is the cost of Implementing a storm water utility? 5) What are the estimated ranges of user charges required to fund this program? Q�� Agenda Item: STORM WATER UTILITY FEASIBILITY STUDY June 22, 1993 - Page 2 The purpose of the recommended study Is to provide answers to these and other questions necessary to fully evaluate this approach. It is especially prudent to act now, as this mandated program will be charged to the General Fund beginning Jury 1, 1993, (first-year estimated cost is $120,000), which will reduce the available funding for current and future programs unless alternative funding Is found. In addition, the State Is considering legislation that could further restrict cities' abilities to establish these types of utilities In the future. Also, the cost of this study could be refunded If and when a storm water utility is established. Staff interviewed four firms with experience In this area. The recommended firm of Kato & Warren, Inc., has the most extensive experience in storm water utility formation and has provided similar services to several cities In California. The scope of services is attached for your further information. The budget for this study Is $65,000 and is estimated to take approximately six months to complete, including public participation. Direct the City Manager to execute a contract with the firm of Kato & Warren, Inc. Transfer $65,000 from 01-4101-290 (General Fund Contingency) to 01.5400.230 (Engineering Professional Services). ATTACHMENT Scope of Services GAC:AJN:hds eounciPAW m all CITY OF SANTA CLARITA STORMWATER UTILITY FEASIBILITY STUDY Presented by: Kato & Warren, Inc. TASKITITLE DESCRIPTION 1.0 PROJECT RESEARCH AND START-UP WORKSHOP This is an Important effort In which the Consultant and City staff explore the many Issues Involved In stormwater management and utility implementation. These Issues relate to the effects on water quality, both groundwater and surface water. Research will be performed to evaluate historic water quality records, boundaries and discharges to receiving waters, such as natural drainage courses and wetlands. Environmental concerns will also be Identified and Incorporated Into the analysis. Further research and data gathering will be done to Identify the current status of the NPDES permit process, assess City and Flood Control District budgets, population and other demographic data, land -use information, and the number, type of accounts and billing costs of the local water purveyors. Products of Task: a) Brief memo summarizing data. b) At least one, 46 hour workshop will be conducted to review this Information and Issues with City staff and the Council. 2.0 DEVELOP FUNDING NEED Following the initial workshop, the Consultant will review current City stormwater activity, current staffing availability and requirements for NPDES activities, and identify and evaluate potential "Best Management Practices," which will meet the requirements of the Regional Water Quality Control Board. This will be compared to current policy and funding limitations. Estimate will be prepared for staffing, equipment and resources needed to meet the management, operations, maintenance and capital needs of the City's stormwater system, assuming an adequate program to meet NPDES and regional water quality goals. Products of Task: a) A technical memorandum suggesting program needs to meet current conditions and possible future NPDES requirements. b) The technical memorandum will contain the budget level expenditure estimates developed by this task effort. SCOPE OF SERVICES Page 2 3.0 CONSIDER FUNDING OPTIONS The Consultant will review currently available funding, including street funds, system development charges, special levies and other sources available to the City. In addition, funding sources, which are available to the City but which are not currently utilized, will be Identified and critiqued. The stormwater utility approach will be detailed and compared to existing funding and projected funding needs. The stormwater utility analysis will develop a suggested user -charge rate structure, together with other suggested fees and charges to provide the revenues to meet the program needs Identified in task 3.0. Products of Task: a) A technical memorandum outlining the funding sources Identified in this task. 4.0 STORMWATER UTILITY ANALYSIS The application of the stormwater utility approach will be described in sufficient detail to Include potential revenues at various billing rates, the methods of billing available and the cost of implementation. The stormwater rate structure will be tailored to the City's specific needs and requirements. A series of issue papers will be prepared to address City questions and concerns. This task will analyze such issues as the billing of user charges on the City's utility bills or County tax records, the cost of developing a billing data base and methods of maintaining the billing data base as growth and changes occur. Products of Task; a) A technical memorandum will be prepared, summarizing the analyses and data developed in the previous tasks. b) Issue papers addressing specific staff or Council questions or concerns regarding the stormwater program and the suggested funding approach. c) A draft of a potential Implementing ordinance for Council consideration. 5.0 PROGRAM IMPLEMENTATION A technical memorandum will be prepared describing the actions and activities needed to Implement the stormwater utility approach and other recommended funding options. This will Include public Information activities to. develop a public awareness. and participation program, as well as the necessary ordinances for Implementation requirements. It will also contain a time schedule for the Council's consideration. This technical memorandum will be combined with the technical memorandum of task 4 to become the stormwater funding feasibility report. Products of Task: a) A stormwater funding feasibility report. b) An executive summary of all findings and recommendations. SCOPE.OF SERVICES Page 3 6.0 PRESENTATIONS The Consultant will meet regularly with the City staff during the course of the study and will make the following presentations: • Regular staff briefings • Two CounclI workshops • One Council presentation • Two additional presentations as needed and as requested by the City Total Estimated Hours: Time Schedule: Estimated Costs: AJN:hds CGUMI"tolltl.* 440 4-6 months $60,000 plus expenses G IIn