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4qOW N op %mss COUNCIL AGENDA REPORT S GplO DATE: APRIL 2, 2013 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER MEETING DATE: 04/15/13 ITEM NO: H f SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET APPROVE THE FY 2013/14 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 RECOMMENDATION: Approve the FY 2013/14 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. BACKGROUND: Locally, there are four programs that manage the prevention of urban runoff pollution from entering the creeks that lead to the San Francisco Bay: the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP), the West Valley Sanitation District (WVSD), 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. WVCWP is a consolidated local program currently managed by 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 municipalities to the State Regional Water Quality Control Board. �17e�7�7�•/ TODD CAPURSO Director of Parks and Public Works Reviewed by: N Assistant Town Manager Town Attorney C Finance N: \PPW\ MANAGEMENT \COUNCIL \COUNCIL REPORTS\2013 Reports \041513 \WVCWP FY 13 -14 Budget.doex PAGE 2 APRIL 2, 2013 MAYOR AND TOWN COUNCIL SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET BACKGROUND (cont'dh Town staff gathers data and provides NDPES related activities to WVCWP for the Annual Report. 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. In October 2009, the Regional Water Quality Control Board issued a permit called the Municipal Regional Stormwater Permit, which is in effect for a period of five years. Over the last several years, Town staff (Parks and Public Works and Community Development) has taken on increasingly larger administrative responsibilities for monitoring the regulatory components of this permit. Costs for permit implementation continue to impact Town resources, as evidenced by new regulations, such as the development of a trash capture device plan and the creation of a short-term trash reduction plan. Staff is currently working on development of a long -term trash reduction plan, which is due in February 2014. These are three examples of new regulations included in the current permit that have created additional burdens on Town resources, resulted in additional staff oversight and have increased program administration costs. These initiatives will also create longer -term maintenance and operations obligations for the Town. These obligations have yet to be fully defined in terms of their scope or financial requirements. DISCUSSION: Each year, the four municipalities participating in the WVCWP and the WVSD cooperatively prepare an outline of the Annual Work Plan for WVCWP and the associated operating 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 property tax rolls. The proposed budget is then presented to the four municipalities individually for approval. The proposed budget is ultimately approved and adopted by the WVSD Board of Directors. The proposed FY 2013 /14 WVCWP budget shows increases in the areas of administration and permit compliance management. The administrative increases are a result of changes in personnel costs and expenses associated with an anticipated office relocation. The additional permit compliance issues require services of a consultant, primarily for the development of a long -term trash reduction plan. This comprehensive plan requires specific expertise and knowledge, which the WVCWP or municipal staffs cannot provide. Additionally, permit fees — attributed to both SCVURPPP and the State — have increased by 6% over last year, and is projected to be $279,000 for the next fiscal year. PAGE 3 APRIL 2, 2013 MAYOR AND TOWN COUNCIL SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET DISCUSSION (cont'd): Regarding the relocation of WVCWP, the program has been housed by the City of Monte Sereno for several years at a nominal rate. The increase in this budget line item accounts for potential increased fees in rental office space. In order to keep costs minimal, program staff would prefer to relocate to a shared office space within one of the municipalities' buildings. Although a new office location has not yet been determined, an office relocation is anticipated to take place sometime during the 2013/14 fiscal year. The WVSD collects fees from Town residents from property tax. The revenue collected is approximately $332,000 annually. Any proposed increase in this fee could trigger requirements of Proposition 218 and would be subject to a vote or protest proceeding. Future Anticipated Changes At this time, it is unknown what regulations and requirements will be added during the next permit cycle because the Regional Water Quality Control Board establishes these regulations. The current permit cycle will end on November 30, 2014. During the current permit cycle, it has been demonstrated that the amount of compliance issues is trending upwards, which means additional administrative costs and personnel time will be needed to manage the stormwater compliance issues. This creates uncertainty in the long term because while the revenues received through the collection of resident parcel tax fees remains constant, administrative costs and permitting fees continue to increase at a relatively high rate. It is also difficult to forecast the specific financial impacts associated with future permit revisions because some permit regulations are closely associated with the number of private development projects. Additionally, the new permit regulations are generally adopted without implementation costs associated with them, therefore municipalities are unaware of the large -scale financial impacts during the permit review process. CONCLUSION: Staff recommends that the Town Council approve the FY 2013/14 West Valley Clean Water Program Budget and authorize the West Valley Sanitation District to collect program related fees on behalf of the Town. ENVIRONMENTAL ASSESSMENT: No environmental assessment needed. Neither the work plan nor the fees are considered a project under CEQA. PAGE 4 APRIL 2, 2013 MAYOR AND TOWN COUNCIL SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET 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 $332,000 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 2013/14 Operating Budget, Attachments: 1. Proposed West Valley Clean Water Program Budget for FY 2013/14 T)i Ztri III itinn 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 West Valley Clean Water Program Campbell - Los Gatos - Monte Sereno - Saratoga WV Committee Approved: 3/13/13 15041 Saratoga Los Gatos Road, Monte Sereno, CA 95030 Final Approved: March13, 2013 Revised Draft Feb 12, 2013 1st Draft: Jan 09, 2013 ATTACHMENT 1 West Valley Clean Water Program Budget Contents I. Budget Line Index Line Item Descriptions II. Budget: WVCWP Year over Year Comparision over 3yrs Comparison III. Municipal Detail: WVCWP Stormwater Cost Allocations IV. Municipal Detail: WVCWP Stormwater Use of Funds Current Year Cost Allocation by Individual WV Agency Use of Funds Summary 3 Final Approved: Marchl3, 2013 Revised Draft Feb 12, 2013 1st Draft: Jan 09, 2013 West Valley / Budget Budget Budget Line Description 1. NPDES Permit Compliance: Labor A. Labor, Payroll Staff on Payroll: FT and PT B. Labor, Payroll Expenses ER portion of Taxes, SDI, PERS, Worker's Comp 2. NPDES Permit Compliance: Labor, Non- payroll, Special Project / 'Tasks A. URMP Support Non- payroll, part -time, temp, or transition staffing B. NPDES Permit & Technical Assistance Consultant, Contract Staff for technical, professional assistance 3. NPDES Permit Compliance: - Database Management Program /Software Mgmt Programs - Document Management/ Storage Annual Report, PI /P, Trash, PoC - Report Production - Forms and Template Management - Project Management A. Events/ Projects /Brochures & Promotional - Cleanup/ [lot Spots materials and supplies Items - Community Events, "Creek Keepers" Program - Equipment Replacement (grabbers, pumps, mats) - Logo -wear - Material Distribution - Outreach & Partnerships (Green Gardener, POTW, local school, retailers) - Promo items - Reprints, brochures & self- print B. Staff Training - Fees - Guest speakers - Sponsor /Host Wkshps - Sponsorships (WMI, Creek Coalition, Green Gardener, etc); C. Outreach Distribution, Data Mgmt D. Compliance Contingency 4. Administration: Occupancy/ Facility Expenses A. Office Rent B. Building Maintenance /Repair C. Utilities - Domain name, hosting fee, email service - Media /Website Maint /Support - Database, Data Mgmt, Maint, Support - Newspaper & Publication Advertising - Additional Tasks Rental/ Lease of office space Alteration and /or Maint for office space; Expenses due to relocation Elec, Gas, Tel, Fax, Internet 3 Final Approved: Marchl3, 2013 Revised Draft Feb 12, 2013 1 st Draft: Jan 09, 2013 West Valley Clean Water Program Budget Budget Line Index 5. Administration: Operations A. Office Supplies Office Supplies, cleaning supplies, paper goods; Ink /Toner Cartridges B, Operating Expenses Meeting Expenses, Manuals, Subscriptions, Auto Maint, Hiring Ads; Staff Transition /Development; Software, Computer Support /Equip Maint /Repair C. Capital & Computer Costs Purchase of office furniture, equipment (Computer, Printer, Scanner, phones) D. Fiscal Agent & Overhead Contract /Fee* Fee for service of processing expenses and holding employee ( *Formerly 6D. Direct Cost Line for tax roll fees and contracts overhead charges); 6. NPDES Permit Compliance: Contract Services, Permits, Fees [individual assesments] A. Industrial /Commercial Inspection Program 1. SCC FD Inspection @ Comm /Ind Facilities (Campbell, Los Gatos & Saratoga only) 2. DEH Restaurant Inspections - contract management & coordinated efforts (no fees at this time) B. Storm Drain Cleaning & System Management" FY12 -13: This item is moved to individual Agency Budget, not within WVCVVP -`Discontinue Line in FY12 -13 Use of Funds Budget, C. Permit Fees & SCV Program Management 1. SCVURPPP Assessment 2. State WDA -NPDES Permit Fee D. Contract Contingency Individual Accounts, for holding un -used funds budgeted for Contract Services Final Approved: March13, 2013 Revised Draft Feb 12, 2013 1st Draft: Jan 09, 2013 4 West Valley Clean Water Program Budget FY13.14 Yr over Yr Comparison WV Assessments; REVENUE 1. NPDES Permit Compliance: Labor A. Labor, Payroll B. Labor, Payroll Expenses 2. NPDES Permit Compliance: Labor, Non - payroll, Special Project/ Tasks A. URMP Support B. NPDES Permit & Technical Assistance Subtotal Labor(1 &2)t NPDES Permit Compliance: Programs A, Events/ Projects /Brochures & Promotional Items B. Staff Training C. Outreach Distribution, Data Mgmt A Compliance Contngency Administration: Occupancy/ Facility Expenses A, Office Rent B. Building Maintenance /Repair C. Utilities A. Office Supplies B. Operating Expenses C. Capital & Computer Costs D. Fiscal Agent & Overhead Contract/Fee A. Industrial /Commercial Inspection Program 1, SCC FD Inspection Fees (Campbell, Los Gatos & Saratoga only) S. Storm Drain Cleaning & System Management* C. Permit Fees & SCV Program Management 1. SCV Program Assessment 2. State NPDES Permit fee D. Contract Contingency Previous Year FY11 -12 MRP Yr3 Current Approved FY12 -13 MRP Yr4 . P. 90,osed -, ' FY33 14 - MRP Yr5 $ 654,076 796 922; $ 654,076 229 277 $ , $ 260 ,434 184,037 186,204 =- 209211, $ 45,240 $ 74,230 $ •91;592:. $ 33,682 $ 37,469 28,682 28,969 5,000 8,500 Ff $ s 262,959 $ 297,903 $ 347,005 $ 6,490 $ 6,620$a z7�3500' I EN 91 500; $ $ $Y ar 5 000; $ 12,983 $ 28,060 y$ 37,500' 5,050 9,090 h A?,'i 15000: 1,100 12,000 1a ; _a' `15'000; $ 6,833 $ 6,970 $ 7500 $ 12,248 $ 38,164 $ 42;SS4a 2,576 2,627 ..t1. =: _ ".2706 8,860 9,037 >12 308' 812 1,500 2.500E $ 25,000 r r ,s IN N 294,fi80 70 9. t - '_ 440 519 66;$2 29 r$ 306,403 $ 20,000 $ 20,000 18.000.; $ 20,000 $ 20,000 18000;; $ 78,900 $ 242,925 $ 263,329 rf 279403 -' $ 211,400. $ 221,259 $ 31,525 $ 42,070 $ 45,503: $ 25,000 $ 9,000`{ 66W 550 746,922 °.' Final Approved; M..h13,2013 R.,Md Droll Feb 12, 2013 Is( Draft: Jan 09, 2013 West Valley Clean Water Program Budget FY13 -14 Municipal Detail Summary: PrYala° Approved Campbell Los Gatos Monte Serene Saratoga WVCWP Stormwater Cost Allocations FY12.0 FY1344. 35.1% 32,6% 2.7% 29.7% MRPY4 I RPYrS FY12.i3 FY13 -14 - '.FY12 -13 FY13 -14 FY12d3 FY13 -14 FY12.13 FY13 -14 1, NPDES Permit Compliance: s 260,434 g 300,805 Labor 2. NPDES Permit Compliance: Labor, f 37,468 $, 46,200 4. Non- payroll, Special Project/ Tasks 3. NPDES Permit Compliance: Programs s 6.620 § 13500 Annual Re Dort, PI /P, Tra2h, POC '. 4, Administration; Occupancy/ s 26,660 g 37500 Facility Expenses E 5, Administration: Operatlon5 s 38.164 42 514 1't'S S 6t halt area d�YWCosts: 6NPDES�pbance rContrae ervlces, Pe its, F es 9 s $ .306,403 '+ +� ++ $ 11 453'`s9oa3s �� $ r6reUl 0 3 s, 1 559 S 79 34§ .. 9 A. Industrial /Commercial Ins ection Program 1. SCC FD Inspection Fees (Campbell, Los Gatos & Saratoga only) s 20,060 5 ��- 16,666 s 13,000 $ 13,000 s 6,000 $ 4,000 s - $ - s 1,a6o $ 1,000 L.: tai n Unin aiV nln9 G S,•4te.m Marogeme P 'Clanv,hr ,. 1, n•. in nYl ?14 S � :: 5 5 5 5 & .. S 5 C. Permit Fees & SCV Program Management 1. SCV Program Assessment ; 233'90 $ ,761 $ 82,100 s 71,967 $ 76,100 s. 5.790 $ 6,200 s 65,767 $ 69,500 2. State NPDES Permit fee s 42,070 $ =! 45,503,1 s 12.374 $ 13,383 s 12,374 $ 13,383 s 4,949 $ 5,353 s. 12,374 $ 13,363 D. Contract Contingency s S 9000' $ 3,000 $ 3,000 $ 1,000 $ 2,000 HM TOTALS GW Urban R noffPro ram 654:676 922.. s �'` � 266106.4 +� a =7; $- 239 6520x49 6 k 244,4,7 : +�•� 2 718, P74 - w _s1="� Final Approved: March13, 2013 Revised Draft Feb. 12, 2013 1st Draft: Jan 09, 2013 West Valley Clean Water Program Budget .: Summary: Approved Campbell Los Gatos Monte Serene Saratoga WVCWP Stormwater Use of Funds 3/13/13 FY13 -14 FY13 -14 FY13 -14 FY13 -14 FY13 -14 Es—t—Imated Beginning PER Balance on 7/11 1 "yvvCWP Rev'e a #' 239 652 '_$ f F` 8 jv ..2. �4.4.47 f F�jk a@ v (HC .i.2N•1.?d- 6 A, Agency Assessments 746 922= $ 266,106 $ 239,652 $ 24,447 $ 216,718 PE pdi� S�kj 746,922t' �i 266��$ �23g65?a t Y n ;g 24 #t ,`R zrr 2s a A. Shared Costs (Lines 1 -5) 154,622 $ 143,169 $ 11,894 $ 130,834 B, Direct Services (Line 6) $ 306 403 $ 111,483 $ 96,483 $ 12,553 $ 85,883 Est, , C, Other Expenses E ; - Ksrz *s 3r-r' �•.3: Net Ghang g�ijft M. 'at"2r'. $ c �= hy`^i r3.3 #1`,.t'ke A`'�tf "§'.Y -g4jn `f�- NA sttmatedaTotal :iSKikfs��<YrSi1,Yh�,- ld`�.. iW t�� 'z $ 5 i5._'a.a ��._ $ f°t n3"�,.i: ?.i. $ R.a. Ff r 3 y h^ XY k1 sft'? ;��•� ice& s� EsttmatedEnding Balance: t £ i$ t N - f >t �9}�r?1 j z"EtyA p � �f'��°'Fx'"`�e, =`iCi -t G 4 NO- O-L.i #a Sr $ ri IBM s ' Reset at Zero Balance each year, Beginning In FY12 -13 as per 2012 MOU Z Adjustments from Previous Year reconciliation, Including reimbursements, refunds or donations As directed by WV Committtee Final Approved: March13, 2013 Revised Draft Feb 12, 2013 1st Draft: Jan 09, 2013 THIS PAGE INTENTIONALLY LEFT BLANK