TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Steve Charelian, Finance Director
Shawn Igoe, Utilities Manager
SUBJECT:Title
Receive a Presentation and Consider Amending Proposed Fiscal Year 2020-2021 Storm Water Budget Expenditures (Public Works Director Katsouleas).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council receive this detailed report on storm water expenditures proposed for Fiscal Year (FY) 2020-2021 and consider whether to amend any budgeted items.
FISCAL IMPLICATIONS:
The proposed storm water budget this year totals $2,697,756, of which $1,210,000 is from prior year appropriations that were “reprogrammed” in the Capital Improvement Program (CIP) to better align the expenditure with the year in which the projects will actually commence. Therefore, “newly programmed” funds for FY 2020-2021 are actually $1,487,756. Of this amount, revenues totaling approximately $345,000 are collected through assessments on property taxes. Another $410,000 in revenues is allocated to the City’s CIP through the County’s Measure W local return program. The residual balance is $732,756. Note that total annual revenues also include interest earnings and a modest reimbursement from Caltrans for street sweeping on Sepulveda Boulevard. Expenditures exceeding total revenues are funded by a transfer from the General Fund to the Storm Water Fund.
BACKGROUND:
On June 11, 2020, City Council directed staff to provide a detailed summary of the proposed expenditures for the FY 2020-2021 Storm Water Program so that Council may consider additional cost-cutting measures in light of the financial impacts caused by Covid-19. City Council previously received a comprehensive presentation on the City’s storm water program on October 1, 2019, along with a host of supporting documents detailing both the requirements of the National Pollutant Discharge Elimination System (NPDES) 2012 Municipal Storm Water Permit (Permit) and what program and measures the City has implemented to comply with the Permit’s terms. Notably, the Permit requires controlling bacteria levels in storm water discharges, eliminating trash in the storm drain system, monitoring of the shoreline, training staff, conducting inspection at key industrial and commercial facilities, and implementing best management practices, which includes new and updated capital improvement projects. The funds allocated by the City cover the expenses associated with implementing the Permit’s provisions and the construction costs associated with our commitment to proactively and reactively repair storm drain defects and failures for approximately 21 miles of pipes and 440 catch basins and inlets.
Over the past three years, the City has awarded more than $1.5 million in storm drain-related capital improvement projects, including emergency repairs, storm line replacements and upgrades, design services, and feasibility studies. Some of the emergency and high priority repairs included: 1) repairing the large sink hole on Artesia Boulevard that occurred in February 2019, 2) upgrading an undersized catch basin at the intersection of 30st Street and Laurel Avenue to mitigate flooding to an adjacent residential property, 3) repairing a sink hole on Manhattan Beach Boulevard near Manhattan Heights, and 4) repairing a large storm water pump at 23rd and Peck Avenue. It is worth noting that Manhattan Beach’s proximity to the Pacific Ocean has negatively impacted the City’s older storm drain pipes because they are typically made of corrugated metal, which has rusted over the past many decades.
Additionally, as mentioned in the previous storm water report, the volume of runoff in Manhattan Beach is now greater than it was when the majority of the storm drain pipes were installed, in large part due to the increase in impervious areas resulting from larger home developments. Portions of the City’s storm drain system is no longer sufficiently sized to adequately carry the volume of runoff now generated. And, we have yet to fully evaluate the potential flooding impacts that may result from climate change and the infrastructure upgrades that will become necessary to address it. Among other things, the recently awarded Storm Drain Master Plan will evaluate the current condition of the City’s storm drain system and make recommendations for repairs and upgrades based on the current and future anticipated runoff volumes.
DISCUSSION:
The attached table provides a detailed list of the proposed line item expenditures attributable to the storm water program. In general, they can be grouped into the following categories from highest to lowest costs, which are provided in greater detail in the attached spreadsheet:
$1,710,000 Capital improvement projects (CIP)
$361,800 Contractors (landscaping, street sweeping, power washing)
$235,294 Utilities and Internal Service Charges (telephone, electricity, buildings, etc.)
$143,156 Consultant (assistance with meeting NPDES requirements)
$99,812 Internal staffing costs (salary, benefits, uniform, overtime, OSHA)
$97,144 Permits, fees and required testing services, including monitoring
$50,550 Materials, supplies and operational expenses
Staff recommends that City Council evaluate each line item provided in the attached spreadsheet and provide direction on which expenditures should be reduced.
ENVIROMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. Itemized Storm Water Expenditures