West Valley Clean Water Program BudgetMEETING DATE: 04/07/15
ITEM NO:
1
��8 CAS °b COUNCIL AGENDA REPORT
DATE: MARCH 27, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MAN
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
STAFF RECOMMENDS THAT THE TOWN COUNCIL:
A. APPROVE THE FY 2015/16 WEST VALLEY CLEAN WATER
PROGRAM BUDGET AND AUTHORIZE THE WEST VALLEY
SANITATION DISTRICT TO COLLECT PROGRAM RELATED FEES ON
BEHALF OF THE TOWN OF LOS GATOS
B. ACCEPT THE STAFF REPORT ON THE NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
RECOMMENDATION:
Staff recommends that the Town Council:
1. Approve the FY 2015/16 West Valley Clean Water Program ( WVCWP) Budget and
authorize the West Valley Sanitation District (WVSD) to collect program related fees on
behalf of the Town of Los Gatos.
2. Accept the staff report on the National Pollutant Discharge Elimination System (NPDES)
permit update.
EXECUTIVE SUMMARY:
The WVCWP ensures that clean, unpolluted water flows to the local creeks and ultimately the
San Francisco Bay. Program requirements continue to increase, both under current regulations
and prospectively under new regulations due to be issued later this year. These increased
requirements fall to local jurisdictions for implementation. This report provides a first look at
increasing requirements and associated costs. Additionally, this report provides information on
the WVCWP budget and recommends Council approval of the draft budget.
BACKGROUND:
The San Francisco Bay Regional Water Quality Control Board (RWQCB) acts as the responsible
agency for regulating water that enters streams and ultimately the bay, ensuring the water is
PREPARED BY: MATT MORLEY
Director of Parks a2Public 6
Reviewed by:
Town Manager /�jown Attorney
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NPDES PERMIT
UPDATE
MARCH 27, 2015
BACKGROUND (cont'd):
clean and unpolluted in compliance with the federally mandated Clean Water Act. The RWQCB
does this through the issuance of permits to local agencies (the Municipal Regional Stormwater
Permits) that require compliance with a series of regulations. The permits are issued regionally
in approximately five year cycles, with the last issuance in October 2009. It is anticipated the
RWQCB will issue a new permit later this calendar year with a tentatively scheduled effective
date in the winter of 2016.
The permits issued by the RWQCB contain requirements which escalate over time. These
requirements are meant to increase accountability at the local jurisdiction level while allowing
ramp up time for compliance. The requirements of the permit may take the form of unfunded
mandates. A discussion on the types of requirements occurs later in this report.
Locally, there are four programs that manage pollution prevention for waterways: the Santa
Clara Valley Urban Runoff Pollution Prevention Program ( SCVURPPP), WVSD, 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.
SCVURPPP is an association of thirteen municipalities (including Los Gatos) in the Santa Clara
Valley and also includes the Santa Clara Valley Water District. The organization ensures that
efforts of the individual jurisdictions align to achieve the requirements set forth in the permit.
WVCWP is a consolidated local program managed by WVSD for the Town and the cities of
Campbell, Monte Sereno, and Saratoga. WVCWP's purpose includes coordinating efforts of
other agencies, such as the County Fire District and County Environmental Health Department,
performing NPDES inspection activities for the Town, conducting public education activities,
streamlining implementation of the current NPDES permit, and writing and submitting the
Annual Report and Work Plan for the four municipalities to the State Regional Water Quality
Control Board. The WVCWP offers a unified, stronger voice to represent the interests of West
Valley cities at the countywide program level and with regional bodies. Additionally, it has
proven to be more cost - effective and time - efficient for the West Valley cities to manage this
program and address NPDES issues through a single point of contact.
The Town's NPDES program provides the local enforcement and compliance efforts associated
with the permit. This includes ensuring compliance at Town facilities, inspecting construction
and development projects to ensure compliance, providing for street sweeping, and providing
reporting information up through the W VCWP to the regional board. As the requirements of the
permit have increased, Town staff have necessarily taken on increasingly greater responsibilities.
DISCUSSION:
The permit structure provides for specific areas of compliance in Section C of the permit. As
examples, Section C.2. is Municipal Operations; C.3. is New Development and Redevelopment;
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NPDES PERMIT
UPDATE
MARCH 27, 2015
DISCUSSION (cont'd):
and C.10. is Trashload Reductions. In the development vernacular, "C.3." requirements are
those necessary to comply with the regional stormwater permit.
In the C.3. Development and Redevelopment section, requirements on developers include Low
Impact Development (LID) features. In the area of stormwater, this includes methods for
treating the stormwater onsite through the use of impervious surfaces, bio- swales, green roofs, or
other solutions. Previous requirements under the current permit equated to one inspection per
project within 45 days of project completion, which inspectors could often fit into their existing
workload when the project was within proximity of other inspection sites. The escalating
regulations have resulted in increases to inspections during construction to capture the
installation progress of each LID. Relating this to projects in Los Gatos, the Gateway project
(i.e., Palo Alto Medical Foundation office on Los Gatos Boulevard) will result in five total
inspections. At Albright (Netflix), staff expects to complete 15 inspections. These are five and
15 fold increases respectively. In addition, coordination must now occur to make the inspections
within the project construction schedule, meaning the inspectors must now actively arrange
inspections into their daily program. The Town will need to conduct an analysis of this work to
align current permit fees with actual costs.
Compounding this project construction inspection workload are ongoing inspection
requirements. Property owners must maintain the LIDs and Town staff are required to inspect
each LID on a rotating five year basis. In the last three years the number of LIDS requiring
inspections increased from two to 12 to a current total of 36. Staff expects this type of
exponential increase to continue as even more strict requirements come forward in the new
permit. Although initial fees are paid through the permit process, ongoing inspections are
unfunded.
Similarly, in C.10. Trashload Reductions, the Town has submitted a plan to meet the requirement
to reduce trashload impacts to creeks 40% by 2014, 70% by 2017, and 100% by 2022. The plan
includes solutions such as trash cleanups, monitoring properties that are large contributors, and
installing trash capture devices in stone inlets. Each of these items has associated costs and
workloads and as the requirements increase, incremental gains become more difficult and more
expensive, with no direct cost recovery option. The Town completes a portion of this work with
in house staff while contracting some services to West Valley Sanitation.
Staff will continue to monitor the permit requirements as they evolve over the next several
months. Work is underway to quantify the cost in staff time and other services to maintain
permit compliance. Staff will provide this information to the Council once it is finalized. One
solution will likely include fee increases to create a program that operates on a cost recovery
basis.
Program Expenses
Each year, the WVSD and the four municipalities participating in the WVCWP cooperatively
prepare an outline of the Annual Work Plan for WVCWP and the associated operating budget for
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NPDES PERMIT
UPDATE
MARCH 27, 2015
DISCUSSION (cont'd):
approval prior to the establishment of the annual user fees, and prior to the District transmitting
those fees to the County for collection from property tax rolls. The proposed budget is then
presented to the four municipalities individually for approval. The draft budget is provided as
Attachment 1 for review and approval with this item. The proposed budget is ultimately
approved and adopted by the WVSD Board of Directors.
The proposed FY 2015 /16 WVCWP budget shows increases in the areas of state mandated
NPDES permit fees, administrative costs, and permit compliance costs related to an increase in
personnel costs. The State associated costs for the NDPES permit are projected to continue to
increase in the long -term. Additionally, costs are projected to increase for fees associated with
facility inspection. For next year's proposed budget, NPDES related fees will increase by 5 %,
while overall administration and program management fees for the WVCWP will increase by
approximately 12 %. Page two of this report provides an overview of the services the WVCWP
provides to the Town.
The WVSD collects fees from Town residents through assessments collected with property
taxes. The revenue collected is approximately $336,000 annually. This compares with the
program expenses of approximately $460,000 in fiscal year 2014 /15. WVSD is currently
pursuing an analysis of the collections to ensure fees are levied at the appropriate level. This
effort may increase the program revenue once complete later this year. Funding increases
through basic fee increases could trigger requirements of Proposition 218, specifically requiring
voter approval, so it could be more difficult to implement. Similar to the area of inspection, staff
continues to look for alternative funding solutions for this portion of the program that will move
it back. to a full cost recovery status. Staff will bring additional information to Council as the
new permit becomes finalized and projected expense increases become clear.
CONCLUSION:
Staff recommends that the Town Council consider:
1. Approving the FY 2015/16 West Valley Clean Water Program Budget and authorize the
West Valley Sanitation District to collect program related fees on behalf of the Town of Los
Gatos.
2. Accepting the staff report on NPDES permit update.
COORDINATION:
This report has been coordinated with the West Valley Clean Water Program and the West
Valley Sanitation District.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NPDES PERMIT
UPDATE
MARCH 27, 2015
FISCAL IMPACT:
The approval of this budget will allow the WVSD to continue to collect revenue on behalf of the
Town in the amount of approximately $336,000 to fund the Town's portion of the WVCWP
operating budget.
If approved by Council, additional details regarding the Town's Non -Point Source Program fund
will be presented to Council as part of the Town's Proposed FY 2015 /16 Operating Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA and no further action is required.
Attachment:
1. Proposed West Valley Clean Water Program Budget for FY 2015/16
Distribution:
Jon Newby, District 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
This Page
Intentionally
Left Blank
DRAFT West Valley Clean Water Program
FY15 -16 Budget
Yr over Yr Comparison
14.7%
MSD Heanng: May xx.2015
M Mc Approred: March X 2015
Reeked Draft Feb 25, 2015
1st Draft: Jan 21, 2015
ATTACHMENT
Previous Year
FY13 -14
MRP Yr5
Current Year
FY14 -15
MRP Yr6/ Renew
Proposed
FV15 -16
MRP -2 Yrl
1. NPDES Permit Compliance:
Labor
A. Labor, Payroll
B. Labor, Payroll Expenses
$
300,805
$
319,671
$
342,141
$ 209,213
$ 234,268
240,505
$ 91,592
$ 85,403
$
101,636
2. NPDES Permit Compliance: Labor,
Non - payroll, Special Project/ Tasks
A. URMP Support
B. NPDES Permit & Technical Assistance
Subtotal Latror(1 &2)
$
46,200
$
49,454
5
t,4, -16,
$ 34,200
$ 40,454
84,464
$ _ 12,000
$ 347,005
$ _ 9,000
$ 369,125
$
S
101000
436.604
3. NPDES Permit Compliance:
Programs, Projects, Training, Data Mgmt
A. PIP- Events/ Outreach Pgm /Brochures & Promotional
Items
B. Staff Training
C. Data Mgmt, Projects /Programs & Reports
D. Compliance Contracts & Contingency
$
13,500
$
17,000
$
18,000
$ 2,500
$ 2,700
$
2,800
$ 1,000
$ 1,000
$
1,200
$ 5,000
$ 7,300
$
8,000
$ 5,000
$ 6,000
$
6,000
4. Administration: Occupancy/
Facility Expenses
A. Office Rent
B. Building Maintenance /Repair
C. Utilities
$
37,500
$
34,500
$
35,000
$ 15,000
15,000
15,500
$ 15,000
12,000
12 000
$ 7,500
$ 7,500
$
7,500
S. Administration: Operations
A. Office Supplies
B. Operating Expenses
C. Capital & Computer Costs
D. Fiscal Agent & Overhead Contract/Fee
$
42,514
$
41,700
$
43,250
$ 2,706
2,700
2,750
$ 12,308
11,000
11,250
$ 2,500
3,000
3,500
$ 25,000
$ 25,000
25 750
1.-S. Subtotal Shared WVCWP Costs:
$ 440,519
$
462,325
$
532,854
6. NPDES Permit Compliance:
Contract Services, Permits, Fees
[individual assesments]
A. Service Contracts:
WVCWP coordinated, but individually billed
1. SCC FD Inspection Fees (Campbell, Los Gatos & Saratoga
only)
e td) in5p -, ti0t1 Pi pgldl i i'drtnw
B. Contracts: Projects, Tasks, Grant Matching (City Specific)
1. Grants, Partnerships
ltornmatt?i PaHtel I -Pe Sefvi rDri!'eC
C. Permit Fees & SCV Program Management
1. SCV Program Assessment
2. State NPDES Permit fee
D. Contingency
$
306,403
$
323,700
$
368,820
$ 18,000
$ 18,000
$
28,000
$ 18,000
$ 18,000
$
18,000
$ 8,500
$
29,000
$ 8,500
$
8,500
279,403
288,400
30 820
$ 233,900
233,900
245,595
$ 45,503
$ 54,500
$
57,225
$ 91000
$ 8,800
$
9,000
TOTAL WV CWP Urban Runoff Program
$
746,922
$
786,025
$
901,674
14.7%
MSD Heanng: May xx.2015
M Mc Approred: March X 2015
Reeked Draft Feb 25, 2015
1st Draft: Jan 21, 2015
ATTACHMENT