STAFF REPORT
Meeting Date:
March 24, 2026
CONSENT
13 SUBJECT: APPROVAL OF AMENDED AND RESTATED NPDES STORMWATER PERMIT
IMPLEMENTATION AGREEMENT
RECOMMENDATION: It is recommended that the City Council:
1. Approve the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement ("Agreement") between the County of Orange, Orange County Flood Control District, and participating Orange County cities (collectively called Permittees);
2. Authorize the City Manager, or designee, to execute the Agreement and any related documents necessary to implement the terms of the Agreement, subject to approval as to form by the City Attorney; and
3. Find that the proposed action is not a “project” under the California Environmental Quality Act pursuant to CEQA Guidelines section 15378 (b). Or, in the alternative, find that the proposed action is exempt pursuant to CEQA Guidelines section 15061(b)(3).
SUMMARY OF THE MATTER
This report recommends that the City Council approve the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement between the County of Orange, the Orange County Flood Control District, and participating Orange County cities.
The Agreement updates the existing regional framework used by Orange County jurisdictions to implement stormwater management requirements under Municipal Separate Storm Sewer System (MS4) permits issued by the California Regional Water Quality Control Boards. The proposed update reflects current regulatory requirements, administrative practices, and program needs while maintaining the collaborative structure used by Orange County jurisdictions to coordinate stormwater compliance activities.
The updated Agreement allows participating jurisdictions to continue implementing the Orange County Stormwater Program through shared regional efforts such as compliance reporting, watershed monitoring, municipal staff training, and development of water quality improvement strategies. The Agreement also introduces additional flexibility to establish optional watershed or project-specific sub-budgets among participating agencies to address localized water quality priorities.
The Agreement maintains the existing cost-sharing formula based on population and land area among the participating jurisdictions, with the Orange County Flood Control District contributing ten percent of total program costs. Approval of the Agreement will allow the City to continue participating in the regional stormwater compliance program administered by the County of Orange.
APPROVAL OF AMENDED AND RESTATED NPDES STORMWATER PERMIT
IMPLEMENTATION AGREEMENT
March 24, 2026
DISCUSSION
Background
The City is a Permittee under the Municipal Separate Storm Sewer System (MS4) permits issued by the California Regional Water Quality Control Boards (Santa Ana and San Diego Regions). The original NPDES Stormwater Permit Implementation Agreement (D90-094), which was executed in 1990 and amended in 1993 and 2002 (D02-048) (Attachment 1), established a cooperative framework for implementing the Orange County Stormwater Program to meet MS4 permit requirements and improve surface water quality.
The Agreement allowed for collaboration, consistency, and cost sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other MS4 program elements required of each of the Permittees.
Since the Agreement was last updated, MS4 permit requirements and related regulatory expectations have changed significantly. Watershed-specific priorities have become more complex and increasingly require targeted strategies and, where applicable, structural and programmatic solutions to meet ongoing and forthcoming compliance obligations.
Updated Agreement
The proposed Agreement (Attachment 2) restates and updates the prior Agreement to reflect current regulatory requirements, administrative practices, and programmatic needs. It continues the regional collaborative approach among Permittees while providing added flexibility to develop watershed- and subwatershed-specific strategies, programs, and projects through optional sub-budgets supported by participating agencies.
The amended and restated Agreement continues the long-standing regional approach to implementing the Orange County Stormwater Program by maintaining the County’s role as administrator of the Program (Attachment 3). This structure supports consistency across Permittees in managing MS4 permit requirements and enables coordinated implementation of regional stormwater management strategies that benefit water quality outcomes throughout Orange County.
The amended and restated Agreement also formalizes annual consultation with the Orange County City Managers Association (OCCMA) as part of the shared cost budget development process, strengthening and clarifying the budget collaboration process already in practice.
In addition, the Agreement clarifies responsibilities for each Permittee, including compliance reporting, monitoring, and the implementation of Best Management Practices (BMPs). This clarification aligns the Agreement with current MS4 permit requirements and related regulatory expectations, and it supports a shared understanding of how regional and local program components are delivered in practice.
Budget Development and Collaboration
The Agreement also strengthens and formalizes engagement with the Orange County City Managers Association (OCCMA) by providing a defined consultation role for strategic input on compliance priorities
APPROVAL OF AMENDED AND RESTATED NPDES STORMWATER PERMIT
IMPLEMENTATION AGREEMENT
March 24, 2026
and funding. This formalized consultation is integrated into the annual shared cost budget approval process and builds on the existing annual budget collaboration process already implemented with OCCMA.
Sub-budget for Target Projects
A key update is the expanded and updated collaborative review process for annual operating budgets, including the ability to establish new sub-budgets with smaller groups of Permittees. These optional subbudgets are intended to support the development of targeted water quality projects and programs at appropriate geographic scales, such as across an MS4 permit area, at a watershed level, or at sub-watershed scales, allowing participating agencies to pursue focused strategies where needs and priorities are most acute.
For sub-budgets allowed under this Agreement that do not apply to all the Permittees, this same cost sharing formula approach would be applied for the participating Permittees. Examples of the types of geographic areas that a sub-budget could apply include: across an MS4 permit area, watershed level, or sub-watershed scales.
Cost Sharing
Finally, the Agreement continues the existing cost-sharing formula between Permittees based on land area and population. The District will contribute 10% of the overall cost, with the County and Cities sharing the remaining 90% for the annual operating budget countywide. For any new sub-budgets established under the Agreement that do not apply to all Permittees, the same cost-sharing formula approach will be applied among the participating agencies.
FINANCIAL ANALYSIS
The City’s financial contribution will be calculated annually based on its proportional share of land area and population, as outlined in the Agreement. Annual program costs are allocated among participating jurisdictions using a formula based on population and land area, with the Orange County Flood Control District contributing ten percent of total program costs.
The City’s annual share of the program budget is determined each fiscal year through the program’s budget approval process. Funding for the City’s participation in the regional stormwater program will be included in the Public Works and Utility Department Water Quality Division budget.
The adopted FY 2025-26 budget includes $142,200 in account 1103136-72037, which includes the City’s share of NPDES program costs. Annual shared costs are determined through the County’s NPDES budget process and distributed to Orange County Permittees in June 2026 for approval following AC and OCCMAWQC recommendations. Final approval occurs once the budget receives support from Permittees representing at least 50 percent of the population and 50 percent of the land area; therefore, future costs remain subject to the final approved shared cost budget and City budget appropriation.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
Participation in the Orange County Stormwater Program supports the City Council’s goals related to environmental stewardship, regulatory compliance, and protection of coastal water quality. The regional
APPROVAL OF AMENDED AND RESTATED NPDES STORMWATER PERMIT
IMPLEMENTATION AGREEMENT
March 24, 2026
program helps ensure that the City meets federal and state stormwater permit requirements while protecting local watersheds and the coastal environment.
ENVIRONMENTAL ANALYSIS
The proposed action is an administrative activity to approve and execute an amended and restated agreement that updates program governance, coordination, and cost-sharing for existing stormwater compliance obligations. Approval of the Agreement does not approve any specific construction activity or physical project. Therefore, the action is not a “project” under CEQA Guidelines section 15378(b)(5) which excludes from the definition of “project” organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. In the alternative, the proposed action is exempt under CEQA Guidelines section 15061(b)(3) (common sense exemption) because it can be seen with certainty that approval of the Agreement itself will not result in a significant effect on the environment.
Approving an amendment to an agreement that updates governance, coordination and cost-sharing for stormwater compliance will not result in any effect on the environment and any future site-specific capital projects or physical improvements that may be pursued under separate authorizations would undergo independent CEQA review, as applicable.
ATTACHMENTS
1. 2002 NPDES Implementation Agreement (Pgs. 5-55)
2. Amended and Restated NPDES Stormwater Permit Implementation Agreement (Pgs. 56-109)
3. Amended and Restated NPDES Stormwater Permit Implementation Agreement with Redlines (Pgs. 110-164)
Submitted By:
.Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Ashley Moran, Sr. PW Analyst/Solid Waste
Coordinator
Thomas Perez, City Engineer
Patrick Donegan, Assistant City Attorney