TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Erika King, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Transfer Agreement with the Los Angeles County Flood Control District for the Disbursement of Local Return Funds from the Safe Clean Water Municipal Program, Also Known as Measure W (Public Works Director Lee).
ADOPT RESOLUTION NO. 24-0121
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RECOMMENDATION:
Staff recommends that City Council adopt Resolution No. 24-0121 approving a Transfer Agreement with the Los Angeles County Flood Control District, Agreement No. 2024MP50, for the disbursement of Local Return Funds from the Safe Clean Water Municipal Program (SCW Program), also known as Measure W, authorize the City Manager and/or his or her designee to execute the agreement, and direct the City Clerk to certify the adoption of Resolution No. 24-0121.
FISCAL IMPLICATIONS:
The City receives approximately $410,000 annually through the Local Return funds from the District’s Measure W Program. These funds must be used for eligible projects, programs with a water quality benefit, and to assist the City in meeting water quality objectives consistent with the Municipal Stormwater Permit and the SCW Program requirements. A single disbursement is expected to be made annually once the County Auditor-Controller has finalized revenues.
BACKGROUND:
The Los Angeles County Flood Control Act, established in 1915, empowered the Los Angeles County Flood Control District (District) to provide flood protection, water conservation, recreation, and aesthetic enhancement within its boundaries.
In 2018, Chapters 16 and 18 of the District’s Code were added to establish and implement the Los Angeles Region Safe Clean Water Program and impose a special parcel tax within the District. This parcel tax, commonly referred to as Measure W, is designed to support projects and programs that increase stormwater capture, reduce pollution from stormwater and urban runoff, increase local water supply, and protect public health.
The SCW Program was approved by Los Angeles County voters as Measure W in November 2018 and is funded through a special parcel tax of 2.5 cents per square foot of impermeable surfaces (e.g., roofs, parking lots, driveways) on private properties within the District's boundaries. Forty percent of the revenues collected annually from this parcel tax are returned to municipalities in proportion to the tax collected within those municipalities. Fifty percent of the revenues are allocated to regional watershed-based multi-benefit projects and scientific studies, while ten percent is used by the District for program administration and oversight.
The City’s original Municipal Safe Clean Water (Measure W) Transfer Agreement was adopted by the City Council on August 18, 2020, through Resolution No. 20-0097 (attached). This agreement outlined the conditions for disbursement of Local Return funds and was effective through Fiscal Year (FY) 2023-2024. The original agreement facilitated the City's receipt of approximately $410,000 annually for various eligible projects and programs related to water quality, water supply, stormwater, and urban runoff.
In previous years, SCW Program funds have been used to cover the City's share of the design cost for the Beach Cities Green Streets Project and operations and maintenance of trash collection devices.
DISCUSSION:
The inaugural SCW Program Transfer Agreement, which includes conditions for disbursement of the Local Return funds, expired on June 30, 2024. In July 2024, the City was notified that the District had prepared a new four-year Transfer Agreement covering FY 2024-2025 through FY 2027-2028 that was similar to the previous agreement with a few minor updates to reflect the current state of the SCW Program.
The City’s agreement, Transfer Agreement No. 2024MP50, is attached for City Council consideration. The City must execute this Transfer Agreement with the District to continue to receive its share of the SCW Program funds.
The Local Return funds, which municipalities receive, are allocated for eligible projects and programs with a water quality focus, assisting municipalities in meeting water quality objectives consistent with the Municipal Stormwater Permit and SCW Program requirements. The funds must be held in a separate interest-bearing account and used exclusively for eligible expenditures consistent with the Program's requirements.
The City submits an annual plan to the District identifying the intended use of the Local Return funds. The City's policy for expenditure of its SCW Program funds is to use these funds for Stormwater Capital Improvement Projects and to monitor the existing system. The City plans to use its FY 2024-2025 Local Return funds to cover the City's share of construction cost for the Beach Cities Green Street project locations within its jurisdiction. Funds will also be used for construction of the Santa Monica Bay Stormwater Total Maximum Daily Load Trash Treatment Project, which will to retrofit the City's storm drain network with certified full-capture devices for trash and debris to meet water quality objectives for multiple pollutants and address water quality impairments in the Santa Monica Bay. In addition, funds will be used to cover the cost of conducting monitoring of the trash removed from existing trash capture devices to demonstrate the effectiveness of the City's trash source control measures, such as the single-use plastic straws and utensils ban, and to provide metrics for effectiveness of the trash control devices. Funds will also be used for design of the Peck Avenue Storm Drain Infrastructure Improvement Project, which will improve water quality and mitigate flooding at the City's 23rd Street and Peck Avenue Stormwater Pump Station.
Additionally, the City has secured $17.6 million in competitive SCW Program funds for the 28th Street Stormwater Infiltration Project, anticipated to begin construction in 2025. This funding was secured through a competitive SCW grant application process, and it is additional funding awarded to the City on top of the Local Return funds.
Staff recommends that the City Council adopt Resolution No. 24-0121 approving Transfer Agreement No. 2024MP50 with the Los Angeles County Flood Control District, authorizing the City Manager and/or his or her designee to execute the agreement, and directing the City Clerk to certify the adoption of Resolution No. 24-0121.
PUBLIC OUTREACH:
The agenda and staff report for this item were posted and noticed as required. Public outreach on the SCW Program is conducted by the District through the SafeClean WaterLA.org website.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 24-0121
2. Transfer Agreement No. 2024MP50
3. Resolution No. 20-0097
4. Original Transfer Agreement