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Home My WebLink About12 - Water Quality Programs & StudiesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 12 February 8, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Budget Amendment —Water Quality Programs & Studies ISSUE: Is it necessary to amend the FY '05 -06 Budget to include unanticipated costs associated with water quality programs and studies? RECOMMENDATION: Adopt Budget Amendment #_ appropriating $162,000 from tidelands funds for water quality programs and studies. DISCUSSION: Newport Bay is an impaired water body per §303(d) of the federal Clean Water Act (CWA). As such, the US Environmental Protection Agency (US EPA) and the State Water Resources Control Board (SWRCB) via the California Regional Water Quality Control Board, Santa Ana Region (Regional Board) are directed to prepare "total maximum daily loads" (TMDLs). A TMDL is a management plan to eliminate a water quality impairment within a certain amount of time. Newport Bay is listed on the §303(d) List for the following substances: • Sediment • Nutrients • Fecal Coliform bacteria • Toxic Pollutants Here is what the TMDLs specifically tell us to do: • Sediment. Local partners (stakeholders in the watershed) must survey the Bay regularly and reduce annual sediment coming into the Bay from 250,000 cubic yards to 125,000 cubic yards (a 50% reduction) by 2008. The TMDL's goal is to reduce dredging frequency in the Bay to once every 20 years. Budget Amendment for WQ Programs and Studies February 8, 2005 Page 2 • Nutrients. Approved in 1999, the Nutrient TMDL limits nitrogen and phosphorus inputs to the Bay. The Nutrient TMDL attempts to reduce the annual loading of nitrogen by 50% -- from 1,400 pounds per day today to approximately 850 to 802 pounds per day at San Diego Creek - by 2012. Phosphorus loading must fall from 86,912 pounds per year in 2002 to 62,080 pounds by 2007. • Fecal Coliform. Approved in 1999, the Fecal Coliform TMDL attempts to reduce the amount of fecal coliform inputs to the Bay enough to make the Bay meet water contact recreation (RECl) standards (swimming, wading, surfing) by 2014 and shellfish harvesting (SHEL) standards (where waters support shellfish acceptable for human consumption) by 2020. • Toxic Pollutants. Approved in 2003, the Toxic Pollutants TMDL addresses Bay inputs like heavy metals (chromium, copper, lead, cadmium, zinc) and priority organics like (endosulfan, DDT, Chlordane, PCBs, Toxaphene, diazinon, chlorpyriphos, more). It will lead to the reduction or elimination of pesticide use by residents, businesses, and municipal services in watershed. Some controls will be placed on heavy metals. The Toxic Pollutants TMDL will also address existing toxic deposits in sediments in Rhine Channel and other areas in the Lower Bay. In addition to the CWA's TMDL program, the CWA directs cities to control or clean runoff entering storm drain systems (called Municipal Separate Storm Sewer Systems or "MS4s') so that the runoff does not hurt water quality at the end of the pipe. Newport Beach has more than 104 miles of MS4s that enter Newport Bay or the Pacific Ocean at more than 200 locations. A 5 -year permit issued under the National Pollutant Discharge Elimination System ( NPDES Permit) by the Regional Board regulates the discharge of both dry- weather and stormwater runoff into and out of our city's storm drain system. In January 2002, the Regional Board adopted a new NPDES Permit for the City, the County, and 24 other co- permittee cities. The NPDES Permit tells us how to limit urban runoff, enforce and report violations, educate residents and businesses, and to comply with the Permit. Financing. The City's taxpayers pay the following for TMDL efforts and NPDES • $80,000 to the County of Orange for NPDES administration • $70,000 to assist with the clearing of the in- channel (San Diego Creek) sediment catch basins, • $37,000 for nutrient monitoring and testing associated with the Nutrient TMDL We also have successfully raised more than $2 million in grants from Propositions 12, 13, 40, and 50 over the past few years. These grants require local matching funds that can range from 10% to 25% of the amount of grant received. In FY '04 -05, the City will use these grant funds for: Budget Amendment for WQ Programs and Studies February 8, 2005 Page 3 • $129,000 worth of studies that help meet the early phase of the Fecal Coliform TMDL; • $271,000 for projects that keep contaminated urban runoff from the Bay and Ocean (via the State's Clean Beaches Initiative). • $246,000 for improvements to Buck Gully; • $500,000 for improvements (and studies) in the Newport Coast Watersheds; and • $105,000 to divert area storm drains into the wastewater system; Even with all of those expenditures and income, we did not properly estimate our water quality project needs during budget preparation time in Spring 2004. Indeed, some of the study proposals and matching funds for grants came up in late 2004, which makes for difficult budget planning. Therefore, we seek a Budget Amendment from Tidelands Revenue that will allocate: • $12,000 more for NPDES administration, because the Regional Board now charges us an annual fee of $12,000 to oversee our MS4 Permit. $70,000 to comply with the Toxic Pollutants and Fecal Coliform TMDLs, via a study coordinated with the Regional Board and UCI that will model water transport in the Upper Bay and that will test specific metals in the Lower Bay. $50,000 to provide our required match for a recent grant we have received for the restoration of Big Canyon Creek. If these funds are not expended in FY 04 -05, they will either be rolled over into FY 05- 06 for the same projects or returned to the General Fund or the Tidelands Fund. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability: This item requires the attached Budget Amendment, because funds for these efforts were not originally included in the adopted FY 04 -05 city budget. Submitted by 1 Dave Ki Assistan City Manager Attachment: Budget Amendment # City of Newport Beach NO. BA- 041 BUDGET AMENDMENT 2004 -05 AMOUNT: $1sz,000.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance �X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations due to unanticipated costs associated with water quality projects and studies. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 230 3605 Tidelands REVENUE ESTIMATES (3601) Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Amount Debit Credit $162,000.00 * $12,000.00 $70,000.00 �2 - / -dj Date bide S� Die Date Description Division Number 2371 Harbor Resources - Tidelands Account Number 80808 NPDES Administration Division Number 7231 Tidelands - Capital Account Number C0310525 Fecal Colfrm TMDL Studies Division Number 7231 Tidelands - Capital Account Number C5100709 Big Canyon Creek Restoration Division Number Account Number Signed:��yc - Financroval: Administr 've Services Director Signed: Z - Administrative AppttvaC City Manager Signed: City Council Approval: City Clerk Amount Debit Credit $162,000.00 * $12,000.00 $70,000.00 �2 - / -dj Date bide S� Die Date