February 11, 2025
4:00 p.m.
In Chambers
Council Chambers
99 E. Ramsey Street
Banning, CA 92220
1. CALL TO ORDER
2. PUBLIC COMMENTS - Agenda Items Only
3. WORKSHOP
3.1 Discuss the New California State Water Resources Control Board Hexavalent Chromium Regulation, Impacts to the City of Banning and Path to Compliance
4. ADJOURNMENT
AGENDA
CITY COUNCIL - SPECIAL MEETING (WORKSHOP)
CITY OF BANNING, CALIFORNIA
The following information comprises the agenda for the regular meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.
Per the City of Banning Manual of Procedural Guidelines, matters taken up by the Council before 10 p.m. may be concluded, but no new matters shall be taken up except upon a majority vote of the council members present and voting. Such an extension shall only be valid for one hour and each hour thereafter shall require a renewed action for the meeting to continue.
Recommendation: Discuss the New California State Water Resources Control Board Hexavalent Chromium Regulation, Impacts to the City of Banning and Path to Compliance.
AFFIDAVIT • DECLARACIÓN JURADA
IT IS HEREBY CERTIFIED under the laws of the State of California that the above agenda was posted on the City's website (www.banningca.gov) as well as the Bulletin Board at Banning City Hall, located at 99 E Ramsey Street, Banning, CA 92220, at least 24 hours in advance of the meeting.
__________________________
Caroline Patton, Administrative City Clerk
Secretario adjunto de la ciudad
City Council - Special Meeting (Workshop) Agenda
February 11, 2025
1 PUBLIC NOTICE • NOTICIA PÚBLICA
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Public Comment
Agenda Items
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Non-Agenda Items
Any member of the public may address this meeting of the City Council on any item which does not appear on the regular meeting agenda but is of interest to the general public and is an item upon which the City Council may act. A three-minute limitation shall apply to each member of the public and no member shall be permitted to share their time with any other person. No action shall be taken, nor discussion held by the City Council, on any item which does not appear on the agenda, unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of §54954.2 of the Government Code.
Special Assistance/Accessibility Requests
In compliance with the Americans with Disabilities Act, any member of the public may request that the agenda and agenda packet be mailed to them. If you need special assistance to participate in this meeting (such as translation services), please contact the City Clerk's Office. Advanced notification of at least 48 hours prior to the meeting will allow the city to make arrangements to ensure your accessibility.
¿Necesita servicios de traducción para participar? Contacto Oficina del Secretario de la Ciudad.
CONTACT • CONTACTO
City Clerk's Office | 951-922-3102 | [email protected] 99 East Ramsey Street, Banning, California 92220
City Council - Special Meeting (Workshop) Agenda
February 11, 2025
2 CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Public Works Director
MEETING DATE: February 11, 2025
SUBJECT: Discuss the New California State Water Resources Control Board Hexavalent Chromium Regulation, Impacts to the City of Banning and Path to Compliance
RECOMMENDATION:
Discuss the New California State Water Resources Control Board Hexavalent Chromium Regulation, Impacts to the City of Banning and Path to Compliance.
BACKGROUND:
Chromium is a metal found in natural deposits of ores containing other elements, mostly as chrome iron ores. It is also widely present in soil and plants. Under most conditions, natural chromium in the environment occurs as Trivalent Chromium (Cr-3), but under oxidizing conditions chromium can exist as Hexavalent Chromium (Cr-6). Chromium also originates as a contaminant in the environment from the discharges of dye and paint pigments, wood preservatives, chrome-plating liquid wastes, and leaching from hazardous waste sites.
Since 1977 California has regulated Total Chromium (Cr-3 and Cr-6) at a Maximum Contaminant Level (MCL) of 50 parts per billion (ppb). The United Stated Environmental Protection Agency (EPA) had also adopted the 50 ppb standard, but in 1991 raised it to the current standard of 100 ppb. In 2001, the State established a Public Health Goal (PHG) of .02 ppb. In 2014, the California State Water Resources Control Board (SWRCB) established a Cr-6 MCL of 10 ppb. However, California was sued over this regulation in 2017 and the Superior Court of Sacramento County ruled that the state “did not adequately document why the MCL was economically feasible.” Economic feasibility evaluates how costly Cr-6 treatment technologies are and whether the price tag is within a water utility’s budget.
Since the Superior Court's invalidation of the Cr-6 MCL, the State has continued to work on establishing a new MCL for Cr-6. In 2020, SWRCB published a white paper "Discussion on Economic Feasibility Analysis in Consideration of a Hexavalent Chromium Maximum Level", which the City submitted a response to, see attached. In 2023, the SWRCB started the formal rulemaking process for establishing a new Cr-6 MCL and in 2024 adopted the new regulation setting the Cr-6 MCL at 10 ppb, which became effective on October 1, 2024.
Amongst other things, the adopted Cr-6 regulation requires that the City begin testing all of it's wells by April 1, 2025, to develop a Cr-6 Compliance Plan, provide a public notice of Cr-6 exceedances and to be in compliance by October 1, 2026. Staff from the Division of Drinking Water has informed City staff that water produced in exceedance of the new Cr-6 MCL can be continued to be used so long as public notices are provided (see attached notices). This will be a policy decision that Council will have to consider when the time comes.
3 It should be noted that water samples are required to be obtained at a well head, before the produced water enters the City's distribution system. In most areas of the City, water is delivered to customers below 10 ppb. See point-in-time water sample results for concentrations in the distribution system.
Nine (9) of the City’s twenty-one (21) wells with Cr-6 concentrations at or near the Cr-6 MCL (wells C2, C3, C4, C5, C6, C8, M3, M10, M11). The Cr-6 concentration in these wells range from 9.6 ppb to 17 ppb.
The Public Works Department has conducted several studies to evaluate different approaches for complying with the Cr-6 MCL.
2016 Cr-6 Compliance Study – initial evaluation of treatment options and costs. 2022 Cr-6 Compliance Study Update – update to the original compliance study, incorporating treatment technology advancements and refreshing cost information. 2024 Cr-6 Compliance Study Update – system-wide update to the 2022 Cr6 compliance study providing cost and non-cost analysis of options (this document).
The objective of the 2024 Cr-6 Compliance Study was to evaluate options for addressing Cr-6 and to develop cost estimates including capital and operation and maintenance all to support the development of a treatment strategy. The 2024 Cr-6 Compliance Study evaluated best available technologies including (BATs) including weak base anion exchange (WBA), strong base anion exchange (SBA) and reduction, coagulation and filtration/microfiltration (RCF/RCMF).
BATs were assessed based on lifecycle costs and operability considerations (chemical consumption, residuals waste generation, and staffing requirements). While the accuracy range of lifecycle costs overlap for each of the alternatives, it was found that the RCF with horizontal filter configuration located at clustered treatment facilities and individual sites was the lowest point estimate lifecycle cost compared with WBA and SBA.
Additionally, the 2024 Cr-6 Compliance Study also identified next steps such as:
Further analysis of sewer disposal at C2, C4, C8, M3 to confirm available sewer capacity.
Confirm if brine can be sent to the wastewater reclamation facility.
Further assessment of site layouts for Wells C3 and C5, which may require the purchase of additional land.
Consider pilot unit options to train operation staff in advance of design and/or startup.
Staff will begin tackling each one of these items very soon.
JUSTIFICATION:
The new Cr-6 MCL will create financial and operating challenges for the City of Banning.
FISCAL IMPACT:
The draft 2024 Cr6 Compliance Study Update has developed a high level range of costs consistent with Association for the Advancement of Cost Engineering (AACE) Class 4 costs with an accuracy range of - 30% to +50%. $23,200,000 to $84,700,000.
The 2024 Cr6 Compliance Study Update also provides a Total Projected Annual Costs (Capital plus Operations/Maintenance) range of $2,400,000 to $7,100,000.
The Water Operations Fund (Fund 660) currently has a revenue budget from metered sales of $13,000,000.
4 It is important to note that the City's current water rate structure does not support the required financial investment to comply with the new Cr-6 regulation. A new rate study will have to be completed to determine rate impacts. Staff will have to work on having more detailed cost estimates developed in order to include those costs in a rate study.
In October, 2024, staff prepared and submitted a grant application for the Foothill West Cr-6 Cluster Facility to the WaterSMART: Drought Response Program: Drought Resiliency Projects. The grant application has asked for $10,000,000, which is the maximum amount available per grant application.
The estimated total cost of the project is $16,801,636. Notice of awards are anticipated to be released by the end of February, 2025.
ALTERNATIVES:
N/A
BUDGETED?:
No
CONTRACT/AGREEMENT:
No
ATTACHMENTS:
1. Cr-6 Regulation.pdf
2. Cr-6 FAQs.pdf
3. SWRCB Staff Report.pdf
4. Response Letter Regarding White Paper Econ Feasibility Analysis Hexavalent Chromium.pdf
5. Point in Time Cr-6 Concentrations in System.pdf
6. Public Notice Before Compliance Deadline.pdf
7. Public Notice After Compliance Deadline.pdf
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May 15, 2020
Ms. Jeanine Townsend
Clerk of the Board
City of Banning
Office of the City Manager
State Water Resources Control Board
P.O. Box 100
Sacramento, CA 95812
Sent via: [email protected]
Re: COMMENTS - White Paper on Economic Feasibility Analysis in Consideration of a Hexavalent Chromium MCL
On behalf of the City of Banning, I would like to submit comments regarding the State Water Resources Control Board's White Paper on Economic Feasibility Analysis in Consideration of a Hexavalent Chromium MCL, as the implications of the White Paper will directly affect the City and its residents.
The City of Banning's highest priority is to deliver safe, clean and affordable water to the community. The City's water utility has 10,648 water service connections, providing water to 31,253 residents. With a median household income (MHI) of $40,627, the Department of Water Resources Disadvantaged Communities Mapping tool designates the entire City as a Disadvantaged Community. As such, the City of Banning does not have the ability to increase water rates to fund system improvements without disproportionally affecting its disadvantaged customers. Therefore, the City depends upon grant funding and other cost-effective strategies to help fund necessary system upgrades and treatment measures to comply with regulatory requirements.
Therefore, it is imperative that a thorough economic feasibility and affordability analysis be conducted to determine the hexavalent chromium (Cr6) maximum contaminant level (MCL). The White Paper acknowledges the competing needs of "protecting public health and keeping water affordable"; the Board's approach to the evaluation of economic feasibility must be designed to address both needs equitably. The City believes that the White Paper properly identifies the problem but falls short in some significant ways.
The primary basis for the Sacramento Superior Court's May 2017 decision to remand the prior Cr6 MCL was that the Department of Public Health (DPH) failed to determine that the proposed standard was economically feasible for affected systems. The Court order includes several findings that either are not addressed or are directly contradicted in the White Paper:
• The Superior Court determined that DPH did not demonstrate that the range of strategies and funding sources available for agencies to achieve compliance and offset costs of new regulations (including grant funding, low or no-interest loans, point of use or point of entry treatment, water blending, variances, exemptions, and consolidations) actually render the Cr6 MCL economically feasible, especially for small water utilities and rate 99 E. Ramsey Street• P.O. Box 998 • Banning, CA 92220-0998 • (951) 922-3100 ATTACHMENT 1
43 payers. The same range of strategies and funding sources are listed in the White Paper, but without an indication that the Board intends to demonstrate their effectiveness. All options must be evaluated in their ability to support the economic feasibility of a new MCL.
• Additionally, the White Paper asserts "there has been no funding available for ongoing operation & maintenance costs and the State has not yet been able to create a statewide low-income rate assistance program." Such programs if implemented in the future, may benefit disadvantaged communities like the City of Banning; however, the White Paper does not indicate the Board plans to evaluate the potential for such programs to help solve the Cr6 MCL economic feasibility problem.
• The White Paper's conclusion that affordability is beyond the scope of an economic feasibility evaluation is inconsistent with the Court's view that "it is difficult to conceive of a definition (of economic feasibility) that does not at least consider affordability." • Lastly, the White Paper proposes to either eliminate consideration of small system costs, or to average total costs across all affected systems. This approach would have the effect of obscuring costs for the most impacted systems, which is inconsistent with the Court's findings that evaluation of economic feasibility: (1) should not average costs across all systems; and (2) should address the disproportionate burdens on small systems.
An additional item of concern neither identified in the court's decision nor in the White Paper is the fact that DPH's previous assessment of the number of affected facilities (i.e., wells) used to determine the potential financial impact per MCL was inaccurate (underreported) for some agencies and must be corrected prior to commencement of any new economic feasibility analysis.
The White Paper on Economic Feasibility Analysis in Consideration of a Hexavalent Chromium MCL was drafted as a response to the May 31, 2017 Sacramento Superior Court judgment invalidating the Cr6 1 Oµg/L MCL and to address the concern that DPH had not properly considered the economic feasibility of complying with the MCL. The City of Banning does not believe that the White Paper is complete in its response to the Court's order which invalidated the previous MCL and urges the Board to consider the points expressed above. The Board must adopt formal guidance and policy in determining economic feasibility in the adoption of all future safe drinking water standards in order to protect public health, but also accommodate the needs of small water systems and disadvantaged communities.
2 44
45 IMPORTANT INFORMATION ABOUT YOUR DRINKING WATER
Este informe contiene información muy importante sobre su agua potable.
Tradúzcalo o hable con alguien que lo entienda bien.
[System] Has Levels of Hexavalent Chromium
Above the Drinking Water Standard
This is not an emergency. As our customers, you have a right to know what you should do, what happened, and what we are doing to correct this situation.
We routinely monitor for the presence of drinking water contaminants. Water sample results received on [date] showed hexavalent chromium levels of [level and units]. This is above the standard, or maximum contaminant level (MCL), of 0.010 milligrams per liter (10 ppb). We are working with the State Water Resources Control Board to address this exceedance and comply with the MCL within a compliance timeline.
What should I do?
• You do not need to use an alternative water supply (e.g., bottled water). • This is not an emergency. If it had been, you would have been notified immediately.
However, some people who drink water containing hexavalent chromium in excess of the MCL over many years may have an increased risk of getting cancer. • If you have other health issues concerning the consumption of this water, you may wish to consult your doctor.
What happened? What is being done?
• A new Hexavalent Chromium MCL of 10 ppb became effective October 1, 2024. • Hexavalent chromium was detected at levels that exceed the MCL. However, a water system of our size is not considered in violation of the Hexavalent Chromium MCL until after [INSERT APPLICABLE TABLE 64432-B COMPLIANCE DATE].
• We [are working to complete / have completed] a Hexavalent Chromium Compliance Plan that [will be reviewed / is being reviewed / has been approved] by the State Water Resources Control Board.
• We are working with the State Water Resources Control Board to address this exceedance and comply with the MCL. Specifically, we are [Describe actions taken (may include pilot studies, environmental review, funding applications, etc.) and planned actions (may include treatment, source changes, etc.)] [Optional:
discuss approved compliance plan if already approved by DDW]. • We anticipate resolving the problem by [estimated time frame (Compliance plan finalization date, if applicable)].
46 For more information, please contact [name of contact] at [phone number] or [mailing address].
Please share this information with all the other people who drink this water, especially those who may not have received this notice directly (for example, people in apartments, nursing homes, schools, and businesses). You can do this by posting this public notice in a public place or distributing copies by hand or mail.
If you are a school or school system, the owner or operator of residential rental property, or the owner or operator of a business property, then you are legally required to notify the following people of the information in this notice within ten days of your receipt of this notice:
• SCHOOLS: You must notify school employees, students, and parents (if the students are minors).
• RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS (including nursing homes and care facilities): You must notify tenants. • BUSINESS PROPERTY OWNERS, MANAGERS, OR OPERATORS: You must notify employees of businesses located on the property. • If you fail to notify the above people, you shall be civilly liable up to $1,000 per day for each day that you fail to notify them. (Health & Saf. Code, §§ 116450, subd. (g); 116650, subd. (e).)
This notice is being sent to you by [system].
State Water System Number: [Insert water system number].
Date distributed: [Insert date the notice is distributed]. 47 IMPORTANT INFORMATION ABOUT YOUR DRINKING WATER
Este informe contiene información muy importante sobre su agua potable.
Tradúzcalo o hable con alguien que lo entienda bien.
[System] Has Levels of Hexavalent Chromium
Above the Drinking Water Standard
Our water system recently violated a drinking water standard. Although this is not an emergency, as our customers, you have a right to know what you should do, what happened, and what we are doing to correct this situation.
We routinely monitor for the presence of drinking water contaminants. Water sample results received on [date] showed hexavalent chromium levels of [level and units]. This is above the standard, or maximum contaminant level (MCL), of 0.010 milligrams per liter (10 ppb).
What should I do?
You do not need to use an alternative water supply (e.g., bottled water). This is not an emergency. If it had been, you would have been notified immediately.
However, some people who drink water containing hexavalent chromium in excess of the MCL over many years may have an increased risk of getting cancer. If you have other health issues concerning the consumption of this water, you may wish to consult your doctor.
What happened? What is being done?
A new Hexavalent Chromium MCL of 10 ppb became effective October 1, 2024. Hexavalent chromium was detected at levels that exceed the MCL. [If applicable] We have completed a Hexavalent Chromium Compliance Plan that [is being reviewed / has been approved] by the Division of Drinking Water. We are working with the Division of Drinking Water to address this violation and comply with the MCL. Specifically, we are [Describe actions taken (may include pilot studies, environmental review, funding applications, etc.) and planned actions (may include treatment, source changes, etc.)] [Optional: discuss approved compliance plan if already approved by DDW and if applicable]. We anticipate resolving the problem by [estimated time frame].
For more information, please contact [name of contact] at [phone number] or [mailing address].
Please share this information with all the other people who drink this water, especially those who may not have received this notice directly (for example, people in 48 apartments, nursing homes, schools, and businesses). You can do this by posting this public notice in a public place or distributing copies by hand or mail.
Secondary Notification Requirements
Upon receipt of notification from a person operating a public water system, the following notification must be given within 10 days [Health and Safety Code sections 116450(g) and 116650(e) ]:
SCHOOLS: Must notify school employees, students, and parents (if the students are minors).
RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS (including nursing homes and care facilities): Must notify tenants. BUSINESS PROPERTY OWNERS, MANAGERS, OR OPERATORS: Must notify employees of businesses located on the property.
This notice is being sent to you by [system].
State Water System Number: [Insert water system number].
Date distributed: [Insert date the notice is distributed]. 49