HomeMy WebLinkAboutItem 11d - Rio Hondo/San Gabriel River Watershed Management JPA PaymentRio Hondo/San Gabriel River Watershed Management JPA Payment
October 1, 2024
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DATE: October 1, 2024
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Briget Arndell, Environmental Services Manager
SUBJECT: AUTHORIZE PAYMENT FOR THE RIO HONDO/SAN GABRIEL RIVER
WATERSHED MANAGEMENT JOINT POWERS AUTHORITY FISCAL
YEAR 2024-25 MEMBERSHIP COST IN THE AMOUNT OF $141,662 AND
APPROVE ANNUAL MEMBERSHIP PAYMENTS FOR AN ADDITIONAL
THREE YEARS, INCLUDING ANNUAL INCREASES OF UP TO 15%
EACH YEAR
CEQA: Not a Project
Recommendation: Authorize and Approve
SUMMARY
To meet state mandated stormwater requirements, the City of Arcadia became a founding
member of the Rio Hondo/San Gabriel River Watershed Management Joint Powers
Authority (“JPA”), consisting of the Cities of Arcadia, Bradbury, Duarte, Monrovia, and
Sierra Madre. Following its formation in 2022, the JPA hired KOA Consulting, Inc. (“KOA”)
to oversee project management of all JPA projects and funding. Prior to the formation of
the JPA, the City of Arcadia was responsible for handling all invoicing and payments to
consultants for the development of multi-benefit stormwater projects for the group. Now
that the JPA is being managed by KOA Consulting, the City of Arcadia is no longer
responsible for managing any finances and must pay its annual membership fee directly
to the JPA. The Fiscal Year 2024-25 annual membership fee for the City of Arcadia is
$141,662. Membership fees are expected to increase each year by no more than 15%
annually, as projects are advanced, and the management effort expands to full capacity.
It is recommended that the City Council authorize payment for the Rio Hondo/San Gabriel
River Watershed Management Joint Powers Authority Fiscal Year 2024-25 annual
membership cost in the amount of $141,662 and approve annual payments for an
additional three years, including annual increases of up to 15% each year.
BACKGROUND
In 2012, the Los Angeles Region Water Quality Control Board adopted the National
Pollutant Discharge Elimination System (“NPDES”) Municipal Separate Storm Sewer
Rio Hondo/San Gabriel River Watershed Management JPA Payment
October 1, 2024
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System Permit (“MS4 Permit”, Order No. R4-2012-0175), which established waste
discharge requirements for stormwater and non-stormwater discharges within the
watersheds of Los Angeles County. The MS4 Permit includes provisions that allow
permittees the flexibility to customize their stormwater programs to achieve compliance,
over time, through the development of an Enhanced Watershed Management Program
(“EWMP”) or Watershed Management Program (“WMP”), on a watershed scale utilizing
customized strategies, control measures, and Best Management Practices (“BMPs”) to
improve water quality.
In 2013, the Cities of Arcadia, Azusa, Bradbury, Duarte, Monrovia, and Sierra Madre,
along with the County of Los Angeles and its Flood Control District, formed the Rio
Hondo/San Gabriel River Water Quality Group (“Group”) to fulfil the requirements of the
Los Angeles County MS4 Permit. The Group included an Oversight Committee comprised
of City Managers and/or their designated staff. A Memorandum of Understanding (“MOU”)
was executed by all agencies for cost sharing, and the development of the EWMP and
Coordinated Integrated Monitoring Plan (“CIMP”) for the Rio Hondo/San Gabriel River
watersheds.
Since the formation of the Group, Arcadia has taken the lead on the management of
membership payments and consultant contracts for the Group and its projects, including
the CIMP and EWMP development. This meant that Arcadia collected the annual
membership payments from participating cities and used the funds to pay for the Group’s
contracts, which were also administered by the City of Arcadia. One agreement was with
CWE, Inc. for the development and implementation of the CIMP Plan, and the second
was with Craft Water Engineering for the development of multi-benefit stormwater
projects.
For years, the Group contemplated the formulation of a JPA to meet stormwater
requirements. However, discussions did not materialize until the Group’s Encanto Park
Regional Project was recently funded through the County of Los Angeles’ Safe Clean
Water (Measure W) program. The funding of this Regional Project brought to the forefront
several complexities associated with the current structure of how the Group operates to
meet requirements. The Joint Exercise Powers Act (Government Code Section 6500, et
seq.) allows two or more agencies to create another legal entity or establish a joint
approach to work on a common problem, fund a project, or act as a representative body
for a specific activity.
On May 17, 2022, the City Council authorized the City of Arcadia to participate in a Joint
Exercise of Powers Agreement with the Cities of Bradbury, Duarte, Monrovia, and Sierra
Madre, to create the Rio Hondo/San Gabriel River Watershed Management Joint Powers
Authority. Due to policy limitations, the County of Los Angeles, and the Los Angeles
County Flood Control District cannot be a participant in the JPA; however, both entities
continue to enter into project-specific cost-share agreements with the JPA.
Rio Hondo/San Gabriel River Watershed Management JPA Payment
October 1, 2024
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DISCUSSION
One of the first tasks for the JPA was to select a firm to oversee management of the JPA,
including any existing contracts the Group currently held. In May 2023, the JPA entered
a contract with KOA Consulting, Inc. ("KOA”) for management of the JPA and project
management of the existing agreements with CWE, Inc. and Craft Water Engineering.
Currently, the JPA is managing logistics of the following regional projects: Arcadia Wash
Ecosystem Restoration and Groundwater Recharge, the Rio Hondo Ecosystem
Restoration located at the Peck Road Lake Park, Encanto Park Stormwater Capture
located in the City of Duarte, and Basin 3E Enhancements located at the Santa Fe
Spreading Grounds. Unfortunately, the project at the Arboretum was determined to be
infeasible and the JPA is now exploring an alternative project site that would utilize the
large lawn area at the Arcadia City Hall. These regional projects are estimated to cost
upwards of $32 million to construct. Securing grant funding and/or other funding
mechanisms is crucial in developing these projects. Such complexities will only continue
to grow as the JPA further explores and receives funding for larger regional projects,
including two potential projects in Arcadia.
With the creation of the JPA, Arcadia no longer oversees any of the agreements, and
therefore, no longer needs to collect membership payments from other agencies. Now
that the JPA is managed by KOA, all membership fees should be paid directly to the JPA,
and payments to any consultants, including KOA, will be made directly from the JPA. The
City of Arcadia’s membership cost for Fiscal Year 2024-25 is $141,662. It is
recommended that the City Council authorize this payment.
ENVIRONMENTAL ANALYSIS
The proposed action of authorizing a payment to the JPA does not constitute a project
under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty
that it will have no impact on the environment. Any environmental reviews that might be
necessary would be overseen by the JPA, acting as lead agency for all efforts of the JPA.
FISCAL IMPACT
The total annual cost for the JPA considers administrative management and accounting
services needed, including insurance, organizational memberships, lobbying, audit
services, and more. The individual agency cost was calculated with a cost-sharing
formula originally established for shared expenses. Costs are based on 10% of the total
fee being evenly distributed between the five cities and the County of Los Angeles, and
the remaining 90% of the cost being calculated based on each agency’s total acreage.
The City of Arcadia’s membership fee for Fiscal Year 2024-25 is $141,662. The
membership fee is expected to increase each year, with an increase of up to 15% each
year as the adopted goals of the JPA are implemented. Such increases will be included
in future budget years.
Rio Hondo/San Gabriel River Watershed Management JPA Payment
October 1, 2024
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Sufficient funds are budgeted in the Fiscal Year 2024-25 Capital Improvement Program
(“CIP”) for the $141,662 JPA membership payment. The City of Arcadia is expected to
receive approximately $1,015,000 in local return from the Safe Clean Water Program
(Measure W) annually, and these funds have been allocated in the CIP for this contract;
no General Fund monies will be utilized.
RECOMMENDATION
It is recommended the City Council determine this action does not constitute a project
under the California Environmental Quality Act (“CEQA”); and authorize payment for the
Rio Hondo/San Gabriel River Watershed Management Joint Powers Authority Fiscal Year
2024-25 membership cost in the amount of $141,662 and approve annual membership
payments for an additional three years, including annual increases of up to 15% each
year.
Attachment: FY 2024-25 Rio Hondo/San Gabriel River Watershed Management Joint
Powers Authority Annual Membership Invoice
INVOICE
DATE: 8/1/2024
INVOICE NO.: MEM-24-01
PAYMENT IS DUE UPON RECEIPT
To: City of Arcadia
Attn: Dominic Lazzaretto
Rio Hondo/San Gabriel River Watershed Management Authority
Annual Membership
Fiscal Year 2024-2025
Description/Cost Allocation Formula Amount
Land Area (90%)
(City of Arcadia makes up 40% of Total Land area) $134,257
Base Cost (10%)
(1/5 of 10% of Total Cost) $7,405
Total $141,662
Please remit payment to:
(via ACH)
Wells Fargo
Account Name: RHSGR Checking
Routing Number: 121000248
Account Number: 4831818000
- or -
(via check)
Rio Hondo/San Gabriel River Watershed Management Joint Powers Authority
Attn: Koa Consulting, Inc.
419 Main Street, No. 320
Huntington Beach, CA 92648