06 Staff Report - Santa Clara Valley Urban Runoff Pollution Prevention Program~pW N 0
!ps G A pS
DATE:
TO:
FROM:
SUBJECT:
COUNCIL AGENDA REPORT
February 24, 2005
MAYOR AND TOWN COUNCIL
MEETING DATE: 3/7/05
ITEM NO. 6
DEBRA J. FIGONE, TOWN MANAGER
ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO SIGN
THE REVISED FIRST AMENDMENT TO AGREEMENT PROVIDING FOR
IMPLEMENTATION OF THE SANTA CLARA VALLEY URBAN RUNOFF
POLLUTION PREVENTION PROGRAM (SCVURPPP)
RECOMMENDATION:
Adopt resolution (Attachment 1) authorizing the Town Manager to sign the revised First Amendment
to the agreement (Exhibit A) providing for implementation of the Santa Clara Valley Urban Runoff
Pollution Prevention Program (SCVURPP).
BACKGROUND:
In December 2004, the Town Council authorized the Town Manager to execute the First Amendment
to the agreement providing for the implementation of the Santa Clara Valley Urban Runoff Pollution
Prevention Program (SCVURPP). Prior to the original agreement, the program was known as the
Santa Clara Valley Nonpoint Source Pollution Control Program. This program represents interests
of the member agencies to the San Francisco Bay Regional Water Quality Control Board, the agency
that issues the agencies (co-permitees), and the permit to discharge storm water into San Francisco
Bay as required by the Federal Clean Water Act. In mid-February 2005, Santa Clara Valley Water
District made the determination that they could not continue with the status quo of the agreement.
Several issues drove this decision, primarily budgetary.
PREPARED BY: J
. CURTIS
of Parks and Public Works
Reviewed by: 2~Assistant Town Manager & Town Attorney Clerk Administrator
~ C/Finance Community Development Revised: 2/24/05 1:48 pin
Reformatted: 5/30/02 N:\B&BCOUNCIL REPORTS\SCVURPPP MOA.2.wpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: REVISED FIRST AMENDMENT TO AGREEMENT PROVIDING FOR
IMPLEMENTATION OF THE SANTA CLARA VALLEY URBAN RUNOFF
POLLUTION PREVENTION PROGRAM (SCVURPPP)
February 24, 2005
DISCUSSION:
The current agreement to form SCVURPPP expires on March 10, 2005, five years from the last date
it was signed by the representative of a member agency. The revised first amendment presented here
includes two specific changes from the one approved by Council in December, 2004. These are
noted on page 2 of the amendment. One revision calls for the SCVURPP Program to conduct a
review of the cost sharing allocation formula and the cost of the Program by December 31, 2005.
The Water District currently pays approximately 30% of the Program costs. Since the District was
affected by the ER-AF shift of funds to the State, the result is a loss in Water District revenue of
about 10% ($51 million) over the next two years. The District has proposed that their cost sharing
percentage for the SCVURPP Program be reduced to a smaller percentage (closer to 5%). This one
year amendment extension will give the SCVURPP Program and the Water District time to come
to an agreement about the cost sharing and the future budget.
The Town and the other co-permittees need to be aware that their cost sharing percentage will likely
increase to help cover the reduction in funds from the Water District. With this amendment there will
not be a budget increase due to reallocation of cost sharing percentages until the FY06-07 budget is
approved. This amendment provides for a year's reprieve to address the budget implications that
would result from carrying out the Water District's request. The Water District's staff report
(Attachment 2) to their Board on January 18, 2005, explains what they are hoping to accomplish.
The Water District has signed the revised First Amendment. Because of the schedule of our Council
meetings, Los Gatos will most likely be the last co-permitee to sign the agreement. It is imperative
that the agreement be signed by March 9, 2005, in order to extend the SCVURPP Program, which
will soon be malting a submittal of the reapplication of the NPDES Permit on behalf of the co-
permitees to the San Francisco Bay Regional Water Quality Control Board (RWQCB). In addition
to the resubmittal for the NPDES Permit, SCVURPPP provides technical assistance to comply with
the various provisions of the permit. This assistance has been invaluable since the provisions of our
stormwater discharge permit have become so stringent and contain requirements that Town staff has
limited knowledge.
CONCLUSION:
With ever stricter requirements being placed on the agencies and communities in Santa Clara Valley,
it is important to have knowledgeable people representing our interests to the RWQCB. Authorizing
the Town Manager to sign the first amendment to the agreement will ensure continuation of the
Santa Clara Valley Urban Runoff Pollution Prevention Program.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: REVISED FIRST AMENDMENT TO AGREEMENT PROVIDING FOR
IMPLEMENTATION OF THE SANTA CLARA VALLEY URBAN RUNOFF
POLLUTION PREVENTION PROGRAM (SCVURPPP)
February 24, 2005
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA, thus no fiirther action is required.
FISCAL IMPACT:
No additional fiscal impact to extend the agreement.
Attachments:
1. Resolution Approving First Amendment (with Exhibit A) - First Amendment to Agreement
2. SCVWD Staff Report
Distribution:
Cheri Donnelly, West Valley Clean Water Program, 18041 Saratoga-Los Gatos Rd, Monte Sereno,
CA 95030
Jill C. Bicknell, P. E., EOA, Inc., 1410 Jackson Street, Oakland, CA 94612
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FIRST AMENDMENT TO AGREEMENT
PROVIDING FOR IMPLEMENTATION OF
THE SANTA CLARA VALLEY URBAN RUNOFF
POLLUTION PREVENTION PROGRAM AND
AUTHORIZING THE TOWN MANAGER TO SIGN THE AGREEMENT
WHEREAS, on December 12, 1999, the Town Manager of the Town of Los Gatos signed
the Agreement Providing for Implementation of the Santa Clara Valley Urban Runoff Pollution
Prevention Program as authorized by the Town Council; and
WHEREAS, the Town Council signed a first amendment to the agreement in December,
2004, and the Santa Clara Valley Water District (SCVWD) subsequently determined that they could
not sign the first amendment due to budgetary concerns associated with the requirement for S CV WD
to pay 30% of the costs of the program; and
WHEREAS, the term of the agreement will expire on March 10, 2005, and the parties to the
agreement wish to continue the agreement in full force for one additional year and have agreed to
conduct an independent review by December 31, 2005 to evaluate the MOA's cost allocation
formula and evaluate the term, scope and cost of the Program MOA.
NOW, THEREFORE, IT IS RESOLVED that the Town Manager is hereby authorized to
execute the First Amendment to Agreement Providing for Implementation of the Santa Clara Valley
Urban Runoff Pollution Prevention Program (Exhibit A).
NOW, THEREFORE, IT IS FURTHER RESOLVED that Resolution 2004-155 approving
the first amendment in December, 2004 is hereby rescinded.
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 7th day of
March, 2005 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS :
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CA
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTACHMENT 1
FIRST AMENDMENT TO AGREEMENT
PROVIDING FOR IMPLEMENTATION
OF
THE SANTA CLARA VALLEY
URBAN RUNOFF POLLUTION PREVENTION PROGRAM
This first amendment to Agreement providing for implementation of the Santa Clara
Valley Urban Runoff Pollution Prevention Program (THE "Amendment") is entered into by and
between the SANTA CLARA VALLEY WATER DISTRICT, a local public agency of the State of
California ("District"); CITY OF CAMPBELL, a municipal corporation of the State of California;
CITY OF CUPERTINO, a municipal corporation of the State of California; CITY OF LOS
ALTOS, a municipal corporation of the State of California; TOWN OF LOS ALTOS HILLS, a
municipal corporation of the State of California; TOWN OF LOS GATOS, a municipal
corporation of the State of California; CITY OF MILPITAS, a municipal corporation of the State
of California; CITY OF MONTE SERENO, a municipal corporation of the State of California;
CITY OF MOUNTAIN VIEW, a municipal corporation of the State of California; CITY OF PALO
ALTO, a municipal corporation of the State of California; CITY OF SARATOGA, a municipal
corporation of the State of California; CITY OF SAN JOSE, a municipal corporation of the State
of California; CITY OF SANTA CLARA, a municipal corporation of the State of California; CITY
OF SUNNYVALE, a municipal corporation of the State of California; and COUNTY OF SANTA
CLARA, a municipal corporation of the State of California.
All of the above mentioned entities are hereinafter collectively referred to as "Parties" or
individually as "Party."
RECITALS
A. The Parties previously entered into that certain Agreement Providing For
Implementation of the Santa Clara Valley Urban Runoff Pollution Prevention Program
(the "Agreement" or "MOA") pursuant to which the Parties established certain terms and
conditions relating to the implementation and oversight of the Santa Clara Valley Urban
Runoff Pollution Prevention Program (the "Program"). A copy of the agreement is
attached hereto as Appendix A. Unless otherwise set forth herein, all terms shall have
the meaning set forth in the Agreement;
B. The Agreement provided for a five-year term, which, based on its execution, is
currently set to conclude on or about March 10, 2005;
C. The Parties expect to utilize the Program to submit a reapplication for the
NPDES Permit in early 2005 and to otherwise address a variety of matters related to
assisting the Parties in effectuating compliance with the Permit after March 10, 2005;
D. The Parties therefore desire to extend the term of the MOA as set forth below;
E. Section 7.02 of the MOA provides that it may be amended by the unanimous
written agreement of the Parties and that all Parties agree to bring any proposed
amendments to their Council or Board, as applicable, within three (3) months following
acceptance by the Management Committee; and
MEAN' T
NOW, THEREFORE, THE PARTIES HERETO FURTHER AGREE AS FOLLOWS:
Section 6.
Section 6.02 of the Agreement is hereby amended as follows:
6.02.01 This Agreement shall continue in full force and effect for an additional
one year beyond its original termination date of March 10, 2005, unless
otherwise terminated by the Parties in accordance with Section 6.03.
Section 2.
Section 2.04 of the Agreement is hereby amended as follows:
2.04.01 The Program shall conduct an independent review by December 31,
2005 to evaluate the MOA's cost allocation formula and evaluate the
term, scope and cost of the Program MOA.
2
IN WITNESS WHEREOF, The Parties have executed this Amendment effective as of
March 10, 2005.
Santa Clara Valley Water District. By:
Name:
Title:
Date:
County of Santa Clara: By:
Name:
Title:
Date:
Town of Los Gatos: By:
Date:
Approved as to Form By.
Date:
Attest By.
Date:
Debra E. Figone, Town Manager
Orry Korb, Town Attorney
Marlyn J. Rasmussen, Clerk Administrator
3
Meeting Date: 01/18/05
Agenda Item No.:
Manager: D, Chesterman
Extension: 2328
Director: All
STAFF REPORT
SUBJECT: Amendment to the Memorandum of Agreement (MOA) for the Santa Clara
Valley Urban Runoff Pollution Prevention Program (Program)
RECOMMENDATION:
That the Board
1) Direct the CEO to not sign the proposed Amendment to the MOA in light of present fiscal
circumstances,
2) Authorize the CEO to execute an alternative amendment that would renew the
agreement for no more than one year,
3) Direct the CEO to formally notify the program of the District intent to no longer serve as
the program's fiscal agent,
4) Authorize the CEO to initiate a re-evaluation of the proportion of the annual program that
the District should pay, and
5) Authorize the CEO to seek reimbursement of the property tax loss to the District due to
serving as the program's fiscal agent.
SUMMARY:
The San Francisco Bay RWQCB has issued Orders 01-024 and 01-119 to establish a
single NPDES Permit that jointly regulates public agencies within its jurisdiction in
northern Santa Clara County. This Permit, issued in 1990 and reissued in 1995 and
2001, imposes waste discharge requirements focused specifically on the reduction of
storm water pollutants and effective elimination of non-storm water discharges to San
Francisco Bay. The current permit expires in February 21, 2006 and SCVURPPP and/or
the co-permittees need to file an application for renewal by February 21, 2005.
The co-permittees jointly developed and established the Santa Clara Valley Urban Runoff
Pollution Prevention Program (Program) to collaborate on compliance with the joint permit.
Expiration of the current Program's Memorandum of Understanding (MOA), included as
Appendix A of Attachment 1, will occur in March 2005. This agenda item requests District
Board consideration of the attached amendment to the MOA (Attachment 1) which would
indefinitely extend the MOA with all other provisions left intact. The other co-permittees are
currently presenting similar items to their governing bodies for approval.
The original MOA, signed in 1990, established a Program Management Committee that
is to provide for the overall Program coordination, review, and budget oversight, all in
accordance with the Permit. The Program's Management Committee, consisting of one
Footer
1 of 3 FCE 1452w (10-17-02)
Attachment 2
SUBJECT:
designated representative from each co-permittee, is the official decision-making body
for the Program. The original MOA was renewed and replaced by another MOA in
March 2000 which expires in March of 2005 unless renewed by the parties.
The MOA approved by the board on December 21, 1999 included CEO requested changes to
improve accountability and meet Board objectives regarding contracting with consultants. The
CEO reported to the Board that the MOA included 1) a process to allow for renegotiation of the
assessment rate for each co-permittee, 2) a process for the District to withdraw as the
program's fiscal agent upon 90 days written notice to the management committee, 3)
requirement to utilize a consultant selection process acceptable to District, and 4) a process to
allow for two annual program audits. During the last five years, there has been no request
made to re-evaluate the assessment rate nor has the District requested to withdraw as the
program fiscal agent. In terms of contracting process, the contract with EOA executed in 2001
was not advertised of selected competitively but was awarded based on the consultant's
specialized experience and to preserve the continuity with the Regional Water Quality Control
Board during the 2000/2001 permit negotiations. Recently, however, the District requested that
the Program utilize a public agency to hire a subcontractor to EOA to ensure competitive
process that meets the District's process.
The MOA also provides that the District is designated as the Program's fiscal and contracting
agent. As the fiscal agent, we collect the total contributions from all co-permittees (see following
table) and pay invoices to contractors as required to support the administration of the program
and in accordance with decisions of the Management Committee.
Santa Clara Valley Urban Runoff Pollution Prevention Program
Schedule of Cost-Sharing Proportions
Jurisdiction
Campbell
Cupertino
Los Altos
Los Altos Hills
Los Gatos
Milpitas
Monte Sereno
Mountain View
Palo Alto
Santa Clara
Saratoga
Sunnyvale
Santa Clara County
Proportional Share
1.88%
2.46%
1.59%
0.43%
1.74%
2.75%
.14%
3.91%
4.06%
6.23%
1.59%
7.25%
5.94%
Subtotal
San Jose
District
39.97%
30.01%
30.02%
Footer 2 of 3 FCE 1452w (10-17-02)
SUBJECT:
Total 100.00%
Impact of State ERAF Shift on District Level of Participation in SCVURPPP
The state ERAF shift of 10 percent of total District revenues has resulted in a shift of
approximately 64 percent of our property tax revenues to the state for the next two years
,resulting in a total loss in revenue of about $51 million. The District's participation in the
SCVURPPP is funded entirely by property taxes and is, therefore, subject to review for
continued funding. Since the District is the fiscal agent for SCVURPPP the ERAF shift was, in
fact, calculated based on consideration of the program's fiscal year 2001/02 $2.9 million budget
as part of total District revenues. Therefore, the 10 percent ERAF shift was increased by
$290,000 to account for the $2.9 million in `revenue' to the District from the program
participants.
Staff Analysis:
In view of the District's current revenue shortages, consideration of an SCVURPPP MOA
extension should include a re-assessment of the District's contribution rate in light of the overall
64 percent reduction in funds for programs supported by the 1 percent ad valorem property
taxes. The evaluation should also consider that the District's role as fiscal agent has caused a
direct loss of approximately $290,000 for each of the next two years for a total loss of $580,000
due the method of calculating the ERAF shift.
Consideration of alternative contribution rates can also benefit from a review of similar programs
and the respective flood control agency's contributions to the local urban runoff control program.
Staff found one other similar sized urban runoff program in the San Francisco Bay Area where a
separate flood control agency contributes to the program costs. The Alameda County Flood
Control District contributes just 1 percent of the total program cost compared with the District's
contribution rate of 30 percent of the total program cost. In general, for the other Bay Area
programs the flood control agency is part of the county government and does not contribute
separately.' In those cases, the county contributes to the urban runoff program based on the
proportion of the population in unincorporated areas within the county's boundaries, similar to
County of Santa Clara, typically on the order of 5 to 10 percent of total program costs.
Request for Board Direction:
Staff is requesting board direction to renegotiate the MOA to reflect the above considerations.
While there is continued benefit in maintaining an active role in the area-wide program, the cost
of that participation should be consistent with changes to -our funding source for this program,
similar to all other District programs funded by the 1 percent property tax.
FINANCIAL IMPACT:
Potential cost savings realized by reallocation of funds from the District's contribution to the
Program will help offset the ERAF property tax shift over the next two years.
Footer 3 of 3 FCE 1452w (10-17-02)
FIRST ANMENDMENT TO AGREEMENT
PROVIDING FOR IMPLEMENTATION
OF
THE SANTA.CL.ARA VALLEY,
URBAN RUNOFF POLLUTION PREVENTION PROGR M'
This first amendment to Agreement. providing for implementation of the.Santa Clara
Valley Urban Runoff Pollution Prevention 1?rograrn (THE "Amendment") is entered into by and
between the SANTA CLARA VALLEY WATER DISTRICT, a local public agency of the State of
California ('District"); CITY OF CAMPBELL, a municipal corporation of the State of California;'
CITY OF CUPERTINO, a municipal corporation of the State of California; CITY OF LOS
ALTOS, a municipal corporation of the State of California: TOWN OF LOS ALTOS H11 LS, a
municipal corporation of the State of California,, TtO\j~IN OF LOS GATOS, a municipal
corporation of the State of California; CITY OF.MILPiTAS, a r unicpal corporation of the State
of California; CITY OF MONTE SERENO; a municipal corporation of the State of California;
CITY OF MOUNTAIN VIEW, a municipal corporation of the State of.California; CITY OF PALO?
ALTO, a municipal corporation of the State of California; CITY OF SARATOGA, a, municipal
corporation of the State:rif California; CITY OF SAN JOSE, a municipal corporation of the State
of California„ CITY OF SANTA CLARA, a municipal corporation of the State of California; ;CITY
OF SUNNYVALE, a municipal corporation of the State of California,; and COUNTY OF SANTA
CLARA, a municipal corporation of the State of California.
All of the above mentioned entities- are hereinafter collectively referred to as "Parties" or
individually as "Party;"
RECITALS
A. The Parties previously entered into that certain Agreement Providing For
Implementation of the Santa.Clara Valley.Urban Runoff Pollution Prevention Program
(the "Agreernert"or "OA:') pursuant to.which the Parties established certain terms and
conditions relating to the irnpiementation.and oversight of the Santa Clara Valley Urban.
Runoff, Poiluticn Prevention'.Prograrn(the "Program"). . A copy of the; agreement is
attached: hereto as Appendix A. Unless otherwise set forth-herein, at( terms shall have*
the meaning set"forth in the Agreement;
B. The Agreement provided fora .five-year term,. Which, based on its execution is
currently set to conclude on or about March 10, 2005;
C. The Parties expect to utilize the Program to submit a,reapplication for the
NPDES Permit in early 2005 and to otherwise address a,variety of matters related to
assisting the Parties in effectuating compliance with the Permit after` ~ larch.l0, 21{}5,
D. The Parties therefore desire to extend the term of the MOA as set forth below;:
E. Section 7;02 of the MOA provides that it ;rnay be amended by the, unanimous
written.agreement of the Parties and that•all Parties agree to' bring any proposed;.
amendments to their Council or Board, as applicable, within three (3) months following.
acceptance by the -Management Committee; and
!Attachment 4
NOW, THEREFORE, THE PARTIES HERETQ EIJRTHER AGREE AS. FOLLOWS:
Sectloh",6.
Section 6.02 of the Agreement is hereby amended as follows:
6.02441 This Agreement shall continue in full force.;and effect for an additional
one year beypgd its original termination date of March 10, 2005, unless
otherwise terminated by the Parties in'accordarice with Section 6.03.
Section 2.
Section 2.04 of the P~greerne(t is hereby ah ended as follows;
2;04.01 The Program shaft clo6duct an independent review: by December
2005 to evaluate the MOA's cost allocation formula and-eualuate the
term, scope and cost of the Program MOA.
t
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