West Valley Clean Water Program Budget�pWN p
COUNCIL AGENDA REPORT
Og GASO
DATE: APRIL 9, 2014
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 04/21/14
ITEM NO: 5
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET
APPROVE THE FY 2014/15 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 2014/15 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)
perform NPDES inspection activities for the Town, conducting public education activities,
streamlining implementation of the current NPDES permit, writing and submitting the Annual
Report and Work Plan for the four municipalities to the State Regional Water Quality Control
Board.
PREPARED BY: MATT MORLEY€
Director of Parks and Public Wor
Reviewed by: L)S1 Assistant Town Manager ti�Town Attorney Finance
N: APPW\MANAGEMENIICOUNCILVCOUNCIL REPORTS\2014 ReportsV042114 \WVCWP FY 14 -15 Budget.docx
PAGE 2
APRIL 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET
BACKGROUND (cont'd):
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
short-term and long -term trash reduction plans. 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 -tenn 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 2014 /15 WVCWP budget shows increases in the areas of state mandated
NPDES permit fees, administrative costs, and permit compliance management costs. State
mandated NPDES permit fees are projected to rise by about 19% next fiscal year. These fees are
based on population, and also consist of the water discharge fee and water monitoring fees. The
State associated costs for the NDPES permit are projected to continue to increase in the long-
term. The additional permit compliance costs are associated with consultant services, primarily
for the implementation of the trash reduction plan and updates to the Town's urban runoff
management plan. These comprehensive plans require specific expertise and knowledge, which
the WVCWP or municipal staffs cannot provide. In the FY 2014/15 proposed budget, there is a
slight increase in personnel costs as well.
The WVSD collects fees from Town residents from property tax. The revenue collected is
approximately $336,000 annually. Any proposed increase in this fee could trigger requirements
of Proposition 218 and could be subject to a vote or protest proceeding.
PAGE 3
APRIL 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET
DISCUSSION (cont'd):
Future Anticipated Chances
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. Although the new permit has not been
released, WVCWP and SCVURPPP staff anticipates the new permit will focus on more stringent
compliance issues related to polychlorinated biphenyls (PCBs), new development and
redevelopment projects and trash reduction. As demonstrated during this permit cycle, 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 2014/15 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.
FISCAL IMPACT:
The approval of this budget will allow the W VSD 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 2014/15 Operating Budget.
PAGE 4
APRIL 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET
Attachment:
1. Proposed West Valley Clean Water Program Budget for FY 2014/15
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
West Malley Clean Water Program
IwAvIest Valley
Clean Water Program
Budget
Fiscal
WV Committee Approved: _3/19/14_
18041 Saratoga -Los Gatos Road, Monte Sereno, CA 45030
WJSD Heari 2: May 44, 2014
M COmm Oe A"Vct Mer 19, 2014
RaVISal Drefl: Mar 13, 2014
15t Draft Mar 3, 2014
ATTACHMENT
West Valley Clean Water Program
FY14 -15 Budget
Contents
I. Budget Line Index Line Item Descriptions
II. Budget: WVCWP Year over Year Compansion over 3yrs
Comparison
III. Municipal Detail: WVCWP Current Year Cost Allocation
Stormwater Cost Allocations by Individual WV Agency
IV. Municipal Detail: WVCWP Use of Funds Summary
Stormwater Use of Funds
MNSD Hearing'. May 14. M14
WV Comma"Nppy'd: Mar 19, 2014
Remsetl Dre1t Mar 93, 2014
1s1 DYat Mar 3, 2014
West Valley Clean Water Program
FY14 -15 Budget
Budget Line Index
Budget Line
I. NPDES Permit Compliance:
Labor
A. Labor, Payroll
8. Labor, Payroll Expenses
2. NPDES Permit Compliance: Labor,
Non - payroll, Special Project/ Tasks
A. URMP Support
B. NPDES Permit &Technical Assistance
3. NPDES Permit Compliance:
Programs, Projects, Training, Data Mgmt
& Reports
A. PIP- Events/ Outreach Pgm /Brochures &
Promotional Items
Description
Staff on Payroll: FT and PT
ER portion of Taxes, SDI, PERS, Worker's Comp
Non-payroll, part-time, temp, or transition staffing
Consultant, Contract Staff for technical, professional assistance
Events, Presentation and Cleanup materials and supplies
- Community Events, "Creek Keepers" Program
- Equipment Replacement (grabbers, pumps, mats)
- Logo -wear
- Material Distribution, Publication, Promotion, Advertising
- Domain name, hosting fee, for outreach website
- Media / Website Maint/Support
- Outreach Partnerships (Green Gardener, POTW, local school,
retailers)
- Promo items, Reprints, brochures & self- print
S. Staff Training Facility Fees
- Guest speakers
- Hosting (Supplies, Consumables,'etc)
- Sponsorship (WMI, ZLI, Creek Coalition, Green Gardener, etc);
C. Data Mgmt, Projects /Programs & Reports Compliance Tasks other than PIP /Outreach and Training:
- Database, Data Mgmt, s /w, Maint, Support
Document Management/ Storage
- Cloud Services, Maint & Support
Device support
Report Production
- Forms and Template Management
- Project Management (Trash Plan Implementation. Trash Plan
Assessments, etc)
MSDHaanng: May 14,2014
WVC-- M1t1ee Appva;. Me119,2014
Revmed Dfaft Mar 13, 2014
1 st Draft! Mar 3, 2014
West Valley Clean Water Program
FY14 -15 Budget
Budget Line Index
D. Compliance Contracts & Contingency - Additional Compliance Tasks:
- Grant Applications, Administration, Implementation
4. Administration: Occupancy/
Facility Expenses
A. Office Rent
Rental/ Lease of office space
B. Building Maintenance /Repair
Alteration and /or Maint for office space;
Expenses due to relocation
C. Utilities
Elec, Gas, Tel, Fax, Internet
S. 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
contracts
6. NPDES Permit Compliance:
Contract Services, Permits, Fees
[individual assesments]
A. Service Contracts: 1. SCC FD Inspection @ Comm /Ind Facilities (Campbell, Los Gatos &
WVCWP Coordinated, but iMNIdualN Wed Saratoga only)
2. DEH Restaurant Inspections - contract management &
coordinated efforts (no fees at this time)
B. contracts: Grant Matching Provide opportunity for WVCWP/ municipal participation in grant
funded projects to complete compliance tasks
Introduce in FY14-15, in anticipation of MRP -2.0 requirements
C. Permit Fees & SCV Program Management 1. SCVURPPP Assessment
2. State WDA -NPDES Permit Fee
D. Contingency Individual Accounts, for holding un -used funds budgeted for
Contract Services
WVSD Hearing; May 14,2014
W V cdmm,U.. AppVd: Mar 19, 2014
Revised Draft Mar 13, 2014
tst Draft' Mar 3, 2014
West Valley Clean Water Program
FY14 -15 Budget
Yr over Yr Comparison
FY12 -13 FY13-14 FY34 -15 „-
MRP Yr4 MRP Yr5 MRP Yr6%:Renew.
Total WV Assessments:
is 654,074 11 $ 746,922 $ - 786,025'
I. NPDES Permit Compliance: $ 260,434- S 300,605 ,# ii19,67y
Labor
A. tabor, Payroll $ 186,204 $ 209 213$ ^: 234,268
B. Labor, Payroll Expenses i <. �a 11n ; a--- -„-_ -,
Non•payroi4 Spetiai Project/ Tasks
A. URMP Support
B. NPDES Permit & Technical Assistance
— 297,903 �#
Programs, Projects, Training, Data Mgmt
A. PIP- Events/ Outreach Pgm. /Brochures &.Promotional
Items
B. Staff Training
C. Data Mgmt PtojectslPrograms & Reports
D. Compliance Contracts & Contingency
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
Contract Services, Permits, Fees
[individual assesments]
A. Service Contracts:
WVCWP coordinated, but individually billed
1. SCC FD Inspection Fees (Campbell, Los Gatos & Si
only)
B. Contracts: Grant Matching
C. Permit Fees & SCV Program Management
I. SCV Program Assessment
2. State NPDES Permit fee
D. Contingency
MSD Heenn0: M., 14, 2014
"C--m ftWd: Me119,2014
Rend DIA M ,13. n14
WDre Ma13,2014
West Valley Clean Water Program
FY14 -15 Budget
Municipal Detail
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Approved(
Campbell
Los Gatos
Monte$am.
Saratoga
Summery. FY14 -15
WVCWP Stormwater Cost Allocations
-
a +
Mmrt6
FY14 -15
FYIM15
FY14-15
FY14 -15
1. NPM P It mplbnce:
labor
'$ 319,671
NPDES Pasat C.PiNnsm Labor,
«xo
$ 49,459
Non-palrall, Spatial Pro7ea4 Tasty
. NPDFS Pe]tnk COmpWmei
1 raga
7 17,000
ftograoss, Pro Jfttk Trvinla% Date Mgovt
. Admintsbadoa: Oo:uponry/
s xmo
S 34.500 ".
Fadfly Expenses
. AdminIsbttion: Operation,
nou
§ 41,100.
Se 162,176}14
$ '1$0,258
s
5,�1$1,31f0
5 dti'tOFal 4hetaif)wvewP Co6ta
r a
tFn 362,37bt
d?
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s 16,000'
a +awo
E 13,000
1 too
•
$ 4.000
1
§ -.
'1 •�
$ 1,000
Saratoga anal)
& COMnt4: Grant Matca
S -
S S
s -
$ 3;000
$ ..
$' 3.W
E -
S 500.
5 -
E 2;000
C. Pmralt Fees & SLY Pnpnm IMnagement
1.SLYP remAase9m:em
, mam
233900
1 o—
E 62,100
m+
o a
$ ]6100
1 aao
.
$ &200
a ce.wo
$ 60500
2. %ate NPOES P¢mo[fee
1..sem
§ 54;Sm
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$ 16,000
a +aa1a
S 16,000
1 u+
$ 6,500
r uwr.
S 16.000
O•CPMi:lpenry
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f &,600
a aaoo
$ 3,=
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$ 3:000
] .1$
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I, row
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TOTAL�WY G1Np Urflan Runoff Program
!, en
;786,025
S ?7$37$
9
E 252856
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West Valley Clean Water Program
FY14 -15 Budget
Municipal Detail
Summary; FY14-15 Approved Campbell Loa Gatos Monte Semno Saratoga
WCWPStormwater USeaf Funds FY14.15 FYt < -15 FY14 -15 FY14.15 FY1445
ASSgsirenE
S 278,576
E 252,356
S - 26,483
$ w 227,011
m
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S + 478,976
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S 150266 '
4 12,16 6
5 18] 311
wkes (lice d)
3 117,100
$ Im'IN
$ 14,00
E 60,500
raet
Remrtie to—a W— earn 1-1. etgit 1 Ie lY22.3 m per 2012 MW
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