AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: THOMAS BEKELE
PUBLIC WORKS DIRECTOR
SUBJECT:
title
APPROVE TRANSFER AGREEMENT WITH THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT - SAFE, CLEAN WATER PROGRAM FOR MUNICIPAL PROGRAM AND RESOLUTION APPROVING A LIST OF PROJECTS TO BE FUNDED BY THE PROGRAM FOR FISCAL YEAR 2024-25
summary
Summary:
On November 6, 2018, Los Angeles County voters approved Measure W, a parcel tax aimed to address regional water capture water and reduce reliance on imported water. Measure W imposes a tax of 2.5 cents per square foot of impermeable surface area on private property in the Los Angeles County Flood Control District (District), generating approximately $285 million annually for the countywide Safe, Clean Water (SCW) Program. For the City to receive its share of collected funds, the City must enter into the Los Angeles County Transfer Agreement and submit an Annual Plan. The City Council will also consider adopting a resolution to incorporate a list of projects and programs to be funded by the SCW Measure W for Fiscal Year (FY) 2024-25.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Endure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendations:
1. Waive further reading and adopt the following resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL. CALIFORNIA, ADOPTING A TRANSFER AGREEMENT BETWEEN THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT AND THE CITY OF SIGNAL HILL, AGREEMENT NO. 2024MP75 FOR THE SAFE, CLEAN WATER PROGRAM - MUNICIPAL PROGRAM
2. Authorize the City Manager to execute the Transfer Agreement between the City and the Los Angeles County Flood Control District, in a form approved by the City Attorney.
3. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING THE LIST OF PROJECTS AND PROGRAMS FOR FISCAL YEAR 2024-25 TO BE FUNDED BY SAFE, CLEAN WATER PROGRAM - MEASURE W FUNDS
4. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA AMENDING THE ADOPTED BUDGET AND AUTHORIZING BUDGET APPROPRIATIONS FOR FISCAL YEAR 2024-25
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Fiscal Impact:
To secure the City’s FY 2024-25 through FY 2027-28 funding allotment of approximately $280,000, the City is required to execute the Los Angeles County Transfer Agreement (Attachments A and B). This annual funding, expected to continue for 30 years, may decrease over time due to tax exemptions and reductions. The City must use these municipal funds for eligible activities related to protecting and improving water quality in lakes, rivers, and the ocean.
The City’s allocation of Safe, Clean Water Program, SCW, revenue funds for FY 2024-25 is estimated to be $280,000. Additionally, the estimated beginning fund balance for FY 2024-25 is $305,081 of unused SCW funds. The estimated expenditures, based on the proposed FY 2024-25 Annual Plan is $394,550, resulting in an estimated ending fund balance to be $190,531 (Table 1).
Staff has proposed a budget adjustment to update the budget so that it corresponds to the proposed FY 2024-25 Annual Plan (Attachment D).
Background:
Los Angeles County’s Measure W, is a special parcel tax of 2.5 cents per square foot of impermeable surface area on private property in the District, was approved by voters on November 6, 2018. This parcel tax generates about $285 million per year countywide for the SCW Program. Since SCW began, it has generated over $670 million for more than 100 projects that increased water supply and safeguard waterways. The SCW Program aims to improve water quality in a manner that achieves additional benefits such as increasing water supply and investing in the health and well-being of Los Angeles County communities.
The goals of the SCW Program include:
• Implementing a new plan for Los Angeles County’s water system to capture the billions of gallons of water lost each year from rainwater running directly into the storm drain system.
• Helping to protect coastal waters and beaches from the trash and contaminants in stormwater that make people sick and threaten marine life.
• Modernizing the 100-year-old water system infrastructure, using a combination of nature, science, and new technology.
• Helping to protect public health, ensuring safer, greener, healthier, and more livable spaces for all.
• Preparing the region for the effects of a changing climate - including recurring cycles of drought, wildfire, and flooding.
• Requiring strict community oversight and independent auditing to ensure local monies raised stay local.
The District implements projects and programs and allocates the revenues from the tax to the Regional Program, Municipal Program, and District Program. The Regional Program, made up of nine Watershed Area Steering Committee (WASC), receives 50% of SCW funding. The Regional Program is responsible for funding multi-benefit regional projects and feasibility, scientific, and technical studies, and the funding of a Watershed Coordinator position for each WASC. The SCW Municipal Program receives 40% of the funding that is allocated to cities as a local return which are proportional to the revenues generated within their boundaries. The SCW District Program receives 10% of the funding for the public education program, local work-force job training, and school education programs.
Analysis:
The Agreement requires municipalities to comply with the SCW Program requirements and other applicable provisions established by the County of Los Angeles Board of Supervisors. The Agreement will disburse municipal funds to the cities in proportion to the tax collected in each jurisdiction on an annual basis. The Agreement for the Municipal Program expires every four years, and funds received are to be used for implementation, operations and maintenance, and administration of eligible projects and programs.
The District distributed the Agreement to municipalities for execution on June 27, 2024. The City will receive the municipal funds for FY 2024-25 within 45 days after execution of the Agreement by the District or within 14 days of the District’s receipt of the City’s Annual Plan, whichever comes later. Funds may be carried over for up to five years, giving cities the opportunity to save up for larger projects.
The City’s municipal funds must be used for eligible activities. Eligible activities include project development, design, construction, effectiveness monitoring, operations and maintenance, as well as for other programs and studies related to protecting and improving water quality in lakes, rivers, and the ocean. Up to 30% of the funds may be used to maintain existing eligible projects and programs.
Measure W emphasizes the importance of accountability, transparency, and community outreach and requires the City to submit an annual list of proposed projects (Attachment C). As recommended by the City’s stormwater management consultant, John L. Hunter & Associates, the proposed Annual Plan for FY 2024-25 is as follows:
Municipalities that receive Measure W funds must provide annual progress and expenditure reports for all projects due annually in December; the report will be reviewed by the California Water Board and Regional Oversight Committee. Staff recommends the City Council adopt the appropriate resolutions as required and authorize the City Manager to execute the Transfer Agreement between the City and the Los Angeles County Flood Control District.
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Resolution Adopting the Transfer Agreement with the Los Angeles County Flood Control District
B. Transfer Agreement with Los Angeles County Flood Control District
C. Resolution Approving a List of Projects to be Funded by Safe, Clean Water
D. Resolution Amending the Budget