04 Staff Report - Storm Water Management Budgettflw N o~ MEETING DATE: 514109
ITEM NO:
,wit
t " 's COUNCIL AGENDA REPORT L
g GAto
DATE: APRIL 16, 2009
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: STORM WATER MANAGEMENT BUDGET
APPROVE THE FY 2009110 STORM WATER MANAGEMENT BUDGET
AND AUTHORIZE THE WEST VALLEY SANITATION DISTRICT TO
COLLECT PROGRAM RELATED FEES ON BEHALF OF THE TOWN OF
LOS GATOS
RECOMMENDATION:
Approve the FY 2009110 Storm Water Management Budget (Attachment 1) and authorize the
West Valley Sanitation District to collect program related fees on behalf of the Town of Los
Gatos.
BACKGROUND:
Locally, there are four programs that manage the prevention of urban runoff pollution from
entering the creeks which lead to San Francisco Bay: the "Santa Clara Valley Urban Runoff
Pollution Prevention Program" (SCVURPPP), the West Valley Sanitation District ()hVSD), the
"West Valley Clean Water Program" (WVCWP), and the Town-managed "Non-Point Source
Discharge Elimination Program" (NPDES). These programs perform various functions required
under the Clean Water Act, Environmental Protection Agency regulations and respective NPDES
permits. The following background information describes the history and purpose of each of
these four programs.
Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP)
SCVURPPP is made up of fifteen co-permittees, which are comprised of 13 Santa Clara County
cities and towns, Santa Clara County itself, and the Santa Clara Valley Water District.
Originally known as the Santa Clara Valley Non-point Source Pollution Control Program, it was
issued a Municipal Storm Water National Pollution Discharge Elimination System permit in
1990 by the San Francisco Regional Water Quality Control ard.
PREPARED BY: TODD CAPURSO
Director of Parks and Public Works
Reviewed by: ~ Assistant Town Manager
W Finance Community
VP-
own Attorney Clerk Administrator
N:IPPWIMANAGEMENTICOUNCILICOUNM REPORTS12009 reports,May 41Storm Water Management Budget Adoption FY 2009-10.doc
PAGE 2
APRIL 16, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: STORM WATER MANAGEMENT BUDGET
BACKGROUND (cont.):
SCVURPPP directs its resources to the technical aspects of watershed monitoring through the
assessment of specific pollutants and conditions of designated beneficial uses.
In October 2001, an amendment to the NPDES permit's Provision C-3 (New and
Redevelopment) was added, increasing monitoring requirements to further reduce pollutants
from entering creeks and the Bay.
West Valley Sanitation District, (WVSD)
In 1994, WVSD entered into an agreement with the Town of Los Gatos, and the Cities of
Campbell and Monte Sereno to collect a fee from property owners to fund various activities
related to the NPDES permit and storm drain management. Each year the Town and the WVSD
conduct annual work that clears the storm drains of debris that would otherwise enter the creeks
and the San Francisco Bay. WVSD cleans half of the Town's storm drains annually.
West Valley Clean Water Program (WVCWP)
WVCWP is a consolidated local program under WVSD for the Town and the cities of Campbell,
Monte Sereno, and Saratoga. WVCWP's purpose includes coordinating efforts of other agencies
(County Fire District and County Environmental Health Department) that perform NPDES
inspection activities for the Town, conducting public education activities and streamlining
implementation of the current NPDES permit and writing and submitting the Annual Report and
Work Plan for the four towns/cities to the State Regional Water Quality Control Board. Town
staff gathers and provides NPDES related activities to WVCWP for this annual report. WVCWP
offers a unified stronger voice to represent the interests of the West Valley cities at the
countywide program level and before regional bodies.
Town of Los Gatos' Non-Point Source Discharge Elimination System Program (NPDES)
The Town's NPDES program's purpose is to prevent debris and hazardous materials from
entering the storm drain system and entering creeks or the San Francisco Bay. This is
accomplished by regularly sweeping streets and parking lots, clearing storm drains, ditches and
culverts and disposing collected material in a safe and secure manner. This activity includes
volunteer groups who regularly pick up debris along the Los Gatos Creek Trail. Town staff
tracks and reports the amount of debris collected by all these activities to WVCWP.
The NPDES permit which regulates each of the four programs is under review. It had been
reissued every five years since 1990 to the Town and its county-wide co-permittees. The current
permit is now up for renewal. In an effort to provide consistency among all Bay Area agencies
that drain storm water into the San Francisco Bay, a new NPDES permit is being issued to all 76
Bay Area agencies so all agencies follow the same guidelines. The new permit, called the
Municipal Regional Stormwater Permit, is anticipated to be implemented on July 1, 2009, and
the NPDES permit fee will increase at that time. It is also anticipated that the tasks and reporting
requirements will increase significantly to meet more stringent standards included in the permit.
The current NPDES permit fee for the Town of Los Gatos is $8,725 annually. It is unknown at
PAGE 3
APRIL 16, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: STORM WATER MANAGEMENT BUDGET
BACKGROUND (cont.):
this time what the new NPDES permit fee amount will be. Full impact of implementation costs
will be assessed during FY 2009110.
DISCUSSION:
Each year, the Town and the West Valley Sanitation District cooperatively prepare an outline of
the annual work plan for WVCWP and the associated budget for approval prior to the
establishment of the annual user fees, and prior to the District transmitting those fees to the
County for collection from the property tax roll.
The property assessment fee collected from an average single-family residence remains at $20.37
per year, and is higher for commercial businesses. The fee collected from 10,673 property
owners in Los Gatos provides revenue of approximately $337,000 per year to sustain the
program. An increase in this fee could trigger requirements of Proposition 218 regarding the
majority votes. This NPDES Permit is a difficult unfunded mandate which all municipalities will
have to address in the long term as such requirements will continue to get more complex in the
years to come.
Staff will be recommending in next year's budget a special one-time study as part of the General
Plan update to consider further organizational and budgetary needs in response to rising NPDES
requirements.
CONCLUSION:
It is recommended that the Council approve the proposed FY 2009110 Storm Water Management
Program Budget and authorize West Valley Sanitation District to collect program related fees on
behalf of the Town of Los Gatos.
ENVIRONMENTAL ASSESSMENTS:
No environmental assessments needed. Neither the work plan nor the fees are considered a
project under CEQA.
FISCAL IMPACT:
For FY 2009/10, the estimated total revenue to be collected by the West Valley Sanitation
District for Storm Water Program activities is $337,000 per year. For FY 2009110, the
PAGE 4
APRIL 16, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: STORM WATER MANAGEMENT BUDGET
FISCAL IMPACT (cont'd):
District is proposing to retain approximately $202,000 for management of the West Valley Clean
Water Program including State permit fees and inspection activities on behalf of the Town.
The remaining $135,000 of the storm fees is budgeted by the District for reimbursement to the
Town for its eligible expenses in carrying out the Town's FY 2009/10 Urban Runoff program.
The Town funds street sweeping activities with this revenue.
Per the Town's Proposed FY 2009/10 budget, the current amount of fees collected does not fully
reimburse the Town for its urban runoff costs as per the recap below:
Description-
Amount
Revenues from West Valley Clean Water Program
Fees
$135,000
Town Storm Water Program Estimated
Expenditures
($14Z,335
Program Expenditures Above Reimbursement Amt.
12 335
As depicted in the table above, the current level of reimbursement to the Town is not anticipated
to fully reimburse the Town for its annual program expenditures for FY 2009/10. Because
annual revenues remitted to the Town are not anticipated to fully recover program costs, the
Urban Runoff Fund balance will be used as a funding source as shown below:
Town Urban Runoff Program Fund
Amount
Estimated Beginning Fund Balance (7/0112009)- Town Urban Runoff Fund
$34,204
Estimated Use of Town Urban Runoff Program Fund Bal. FY 2009/10
12 335
Estimated Ending Funding Balance (7/0112010)
21 869
As demonstrated above there is a sufficient fund balance available in FY 2009110 to absorb the
excess of program expenditure above program reimbursements of $12,335. However, the fund
cannot continue to subsidize the under-reimbursement indefinitely.
Addressing the under repayment of program expenditures will likely require an adjustment to the
annual fee of $20.37 for Los Gatos property owners (fee for residential, it is moderately higher
for commercial properties). Any future adjustment to the annual fees will need to be pursued by
the Town and West Valley Sanitation District using the appropriate process, which may require a
mail-in ballot pursuant to Proposition 218.
PAGE 5
APRIL 16, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: STORM WATER MANAGEMENT BUDGET
Attachments:
West Valley Clean Water Program - Municipal Budget Detail FY 09110
Distribution:
Bob Reid, Manager, West Valley Sanitation District,
100 East Sunnyoaks Avenue, Campbell, CA 95008
Kelly Carroll, Program Manager, West Valley Clean Water Program,
18041 Saratoga-Los Gatos Road, Monte Sereno, CA 95030-4299
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