West Valley Clean Water ProgramPREPARED BY : MATT MORLEY
DIRECTOR OF PARKS AND PUBLIC WORKS
Reviewed by: Assistant Town Ma nager Town Attorney Finance
MEETING DATE: 04/05 /16
ITEM NO : 6
COUNCIL AGENDA REPORT
DATE: MARCH 24, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
A. APPROVE THE FY 2016/17 WEST VALLEY CLEAN WATER PROGRAM
BUDGET AND AUTHORIZE THE WEST VALLEY SANITATION DISTRICT TO
COLLECT PROGRAM RELATED FEES ON BEHA LF OF THE TOWN OF LOS
GATOS .
B. ACCEPT THE STAFF REPORT ON THE NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE.
RECOMMENDATION :
1. Approve the FY 2016/17 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. Accept the staff report on NPDES permit update.
BACKGROUND :
The West Val ley Clean Water Program (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 look
at increasing requirements and associated costs. Additionally, this report provides information on the
WVCWP budget and r ecommends Council approval of the draft budget.
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 c lean 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
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MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
MARCH 24, 2016
BACKGROUND (cont’d):
compliance with a series of regulations. The permits are issued regionally in approximately five year
cycles, with the last issuance in October 2009. The RWQCB has issue d a new permit with a tentatively
scheduled effective date in the winter of 2016.
The permits issued by t he 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 manda tes. 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), W est Valley Sanitati on District , 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.
SCVU RPPP 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 requireme nts 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 C ounty -wide 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
perm it. This includes ensuring compliance at Town facilities, inspecting construction and development
projects to ensure compliance, providing for street sweeping, and reporting information through the
WVCWP to the regional board. As the requirements of the permit have increased, Town staff have
necessarily taken on increasingly greater responsibilities.
DISCUSSION :
Section C of the permit identifies areas of compliance , including Section C.2. Municipal Operations ,
C.3. New Development and Redevelopment , and C.10. Trashload Reductions.
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MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
MARCH 24, 2016
DISCUSSION (cont’d):
All private development must comply with the “C.3.” requirements of the regional stormwater permit.
T he C.3. requirements include the implementation of Low Impact Development (LID) features to treat
stormwater onsite through the use of pervious surfaces, bio -retention basins , green roofs, or other
solutions. Inspection requirements have increased under the current permit . Previously, one inspection
was required per project within 45 days of p roject completion, and P arks and P ublic W orks inspectors
could often fit the inspection into their existing workload when the project was within proximity of other
inspection sites. The escalating regulations now require more frequent inspections during c onstruction
to capture the installation progress of each LID.
Compounding th e project construction inspection workload is other 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 few years , the number of LIDs requiring inspections has continued to
increase . Staff expects this type of 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 i n 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 pl an includes
solutions such as cleaning up trash, monitoring properties that are large contributors, and installing trash
capture devices in storm inlets. Each of these items has associated costs and workloads and a s the
requirements increase, incrementa l 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 is continu ing to monitor the permit requir ements as work plans evolve over the next year . Work
continues towards quantify ing 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. Fee increases for inspections
related to construction and development have been programmed in the Fiscal Year 2016/17 budget with
the goal of re covering those costs. Other permit requirements that do not have a nexus to development,
such as trash capture requirements at Town wide catch basins or storm water outfalls, continue to be a
general fund obligation. Staff continues to look for alternative models for funding this po rtion of the
program.
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 approval prior to
the establishme nt 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 a s Attachment 1 for review and approval with
this item. The proposed budget is ultimately approved and adopted by the WVSD Board of Directors.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
MARCH 24, 2016
DISCUSSION (cont’d):
The proposed FY 201 6 /1 7 WVCWP budget shows increases in the areas of operating expenditu res ,
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 7 %. 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. These fees fund the WVCWP as well as some
Town obligations within the Town’s overall program budget of approximately $500 ,000 . WVSD
continues to conduct an analysis of the collections to ensure fees are levied at the appropriate level.
Funding increases through basic fee increase s could trigger requirements of Prop osition 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 fu nding 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
and work plan become finalized and projected expense increases become clear.
CONCL USION :
1. Approv e the FY 201 6 /1 7 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. Accept the staff report on NPDES permit update.
COORDINATION:
Th is report has been coordinated with the West Valley Clean Water Program and the West Valley
Sanitation District.
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 approxim ately $3 36 ,000 to fund the Town’s portion of the WVCWP operating budget.
The Town’s portion of the WVCWP for FY 2016/17 is $306,641. In other words, the approval of the
budget does not involve the appropriation of any funds from the Town ’s general fund.
ENVIRONMENTAL ASSESSMENT :
This i s n ot a project defined under CEQA and no further action is required.
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MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT UPDATE
MARCH 24, 2016
Attachment:
1. West Valley Clean Water Program FY 2016/17 Proposed Budget
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
DRAFT West Valley Clean Water Program
FY16-17 Budget
Yr over Yr Comparison
WVSD Hearing: May xx, 2016
WV MC Approved: March xx, 2016
Revised Draft Feb 17, 2016
1st Draft: Jan 25, 2016
Previous Year Previous Year PROPOSED
FY14-15 FY15-16 FY16-17
MRP Yr6/ Renew MRP-2 Yr1 MRP2 Yr2
1. NPDES Permit Compliance:
Labor
319,671 $ 342,141 $ 373,750 $
A. Labor, Payroll 234,268 $ 240,505 $ 266,964 $
B. Labor, Payroll Expenses 85,403 $ 101,636 $ 106,786 $
2. NPDES Permit Compliance: Labor,
Non-payroll, Special Project/ Tasks
49,454 $ 94,464 $ 82,016 $
A. URMP Support 40,454 $ 84,464 $ 72,016 $
B. NPDES Permit & Technical Assistance 9,000 $ 10,000 $ 10,000 $
Subtotal Labor(1&2):369,125 $ 436,604 $ 455,765 $
3. NPDES Permit Compliance:
Programs, Projects, Training, Data Mgmt
17,000 $ 19,300 $ 21,600 $
A. PIP- Events/ Outreach Pgm /Brochures & Promotional
Items
2,700 $ 2,800 $ 2,800 $
B. Staff Training 1,000 $ 2,000 $ 2,500 $
C. Data Mgmt, Projects/Programs & Reports 7,300 $ 8,000 $ 9,800 $
D. Compliance Contracts & Contingency 6,000 $ 6,500 $ 6,500 $
4. Administration: Occupancy/
Facility Expenses
34,500 $ 35,300 $ 35,500 $
A. Office Rent 15,000 $ 15,500 $ 15,500 $
B. Building Maintenance/Repair 12,000 $ 12,000 $ 12,000 $
C. Utilities 7,500 $ 7,800 $ 8,000 $
5. Administration: Operations 41,700 $ 43,550 $ 60,800 $
A. Office Supplies 2,700 $ 2,800 $ 2,800 $
B. Operating Expenses 11,000 $ 11,500 $ 23,500 $
C. Capital & Computer Costs 3,000 $ 3,500 $ 5,500 $
D. Fiscal Agent & Overhead Contract/Fee 25,000 $ 25,750 $ 29,000 $
1.-5. Subtotal Shared WVCWP Costs: 462,325 $ 534,754 $ 573,665 $
6. NPDES Permit Compliance:
Contract Services, Permits, Fees
[individual assesments]
323,700 $ 359,900 $ 365,350 $
A. WVCWP Service Contracts:
WVCWP coordinated, but individually billed
18,000 $ 30,000 $ 30,000 $
1. SCC FD Inspection Fees (Campbell, Los Gatos & Saratoga
only)
18,000 $ 18,000 $ 18,000 $
2. Inspection Program Partner (Commercial Facilities)12,000 $ 12,000 $
B. Muni Programs: Projects, Tasks, Grant Matching (City Specific)8,500 $ 20,400 $ 26,350 $
1. Grants, Partnerships 8,500 $ 8,200 $ 8,200 $
2. Muni Programs: FCD Repair/Maint, SD Revenue Program Admin 12,200 $ 18,150 $
C. Permit Fees & SCV Program Management 288,400 $ 300,500 $ 300,500 $
1. SCV Program Assessment 233,900 $ 243,400 $ 243,400 $
2. State NPDES Permit fee 54,500 $ 57,100 $ 57,100 $
D. Contingency 8,800 $ 9,000 $ 8,500 $
TOTAL WV CWP Urban Runoff Program 786,025 $ 894,654 $ 939,015 $
DRAFT West Valley Clean Water Program
FY16-17 Budget
Municipal Detail
WVSD Hearing: May xx, 2016
WV MC Approved: March xx, 2016
Revised Draft Feb 17, 2016
1st Draft: Jan 25, 2016
Previous
Year Previous Year
FY15-16 FY16-17
MRP-2 Yr1 MRP2 Yr2 FY15-16 FY16-17 FY15-16 FY16-17 FY15-16 FY16-17 FY15-16 FY16-17
1. NPDES Permit Compliance:
Labor 342,141 $ 373,750 $
2. NPDES Permit Compliance: Labor,
Non-payroll, Special Project/ Tasks 94,464 $ 82,016 $
3. NPDES Permit Compliance:
Programs, Projects, Training, Data Mgmt
& Reports
19,300 $ 21,600 $
4. Administration: Occupancy/
Facility Expenses 35,300 $ 35,500 $
5. Administration: Operations 43,550 $ 60,800 $
1.-5. Subtotal Shared WVCWP Costs: 534,754 $ 573,665 $ 187,699 $ 201,357 $ 173,795 $ 186,441 $ 14,438 $ 15,489 $ 158,822 $ 170,379 $
6. NPDES Permit Compliance:
Contract Services, Permits, Fees
[individual assesments]
359,900 $ 365,350 $ 132,000 $ 135,050 $ 118,000 $ 120,200 $ 15,000 $ 15,050 $ 94,900 $ 95,050 $
A. WVCWP Service Contracts:
WVCWP coordinated, but individually billed
1. SCC FD Inspection Fees (Campbell, Los Gatos &
Saratoga only)18,000 $ 18,000 $ 13,000 $ 13,000 $ 4,000 $ 4,000 $ -$ -$ 1,000 $ 1,000 $
2. Inspection Program Partner (Commercial
Facilities)12,000 $ 12,000 $ 4,500 $ 5,000 $ 6,500 $ 6,000 $ -$ 1,000 $ 1,000 $
B. Muni Programs: Projects, Tasks, Grant
Matching (City Specific)1. Grants, Partnerships 8,200 $ 8,200 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 200 $ 200 $ 2,000 $ 2,000 $
2. Muni Programs: FCD Repair/Maint, SD Revenue Program Admin 12,200 $ 18,150 $ 5,500 $ 8,150 $ 5,500 $ 8,300 $ 1,200 $ 1,450 $ -$ 250 $
C. Permit Fees & SCV Program Management
1. SCV Program Assessment 243,400 $ 243,400 $ 86,000 $ 86,000 $ 79,000 $ 79,000 $ 6,400 $ 6,400 $ 72,000 $ 72,000 $
2. State NPDES Permit fee 57,100 $ 57,100 $ 16,800 $ 16,800 $ 16,800 $ 16,800 $ 6,700 $ 6,700 $ 16,800 $ 16,800 $
D. Contingency 9,000 $ 8,500 $ 3,200 $ 3,100 $ 3,200 $ 3,100 $ 500 $ 300 $ 2,100 $ 2,000 $
TOTAL WV CWP Urban Runoff Program 894,654 $ 939,015 $ 319,699 $ 336,407 $ 291,795 $ 306,641 $ 29,438 $ 30,539 $ 253,722 $ 265,429 $
35.1%
Summary: FY15-16
WVCWP Stormwater Cost Allocations
Campbell Los Gatos Monte Sereno Saratoga
29.7%2.7%32.5%