September 16, 2025
DocID #52261v1
Public Works
DATE: September 16, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Public Works Director / City
Engineer
Mary Phelps, Water Resource Division Manager
Subject:
Contract with Earth Island Institute for a Supplemental Environmental Project to Promote Awareness of
Environmental Quality
FINANCIAL IMPACT: The total penalty of $336,000 assessed by the Regional Water Board pursuant to settlement agreement with the
City is being funded by the Wastewater Enterprise Fund.
Of this amount, $168,000 will be paid to the State Water Pollution Cleanup and Abatement Account, and $168,000
will fund a Supplemental Environmental Project (SEP)
implemented by Earth Island Institute (Kids for the Bay).
The City has submitted a demand to Veolia Water for
reimbursement of the full penalty amount. This
expenditure is included within the approved fiscal year 2025-2026 Wastewater Enterprise Fund budget and
there is no financial impact to the General Fund (Account String: 40322731 – 400293).
PREVIOUS COUNCIL
ACTION:
May 12, 2025
STATEMENT OF THE
ISSUE:
The City must comply with a settlement agreement
issued by the Regional Water Board assessing $336,000
in penalties for National Pollutant Discharge Elimination System (NPDES) permit violations at the Richmond
Water Pollution Control Plant. The issue before Council is whether to adopt a resolution approving a $168,000
contract with Earth Island Institute (Kids for the Bay) to AGENDA
REPORT
September 16, 2025
DocID #52261v1
implement a Supplemental Environmental Project (SEP)
that satisfies a portion of the settlement requirements.
RECOMMENDED ACTION:
ADOPT a resolution to APPROVE a contract in the
amount of $168,000 with Earth Island Institute (Kids for the Bay) to implement a Supplemental Environmental
Project (SEP) that raises awareness of water quality and non-point source pollution, pursuant to Water Board
Order No. R2-2025-1019 and AUTHORIZING the city
manager or designee to execute the contract - Public
Works Department (Mary Phelps 510-621-1269/Robert
Armijo 510-620-5477).
DISCUSSION:
On May 12, 2025, the San Francisco Bay Regional Water Quality Control Board issued a Stipulated Administrative Civil Liability Order (Order No. R2-2025-1019) (“Order”) to the City of Richmond and Richmond Municipal Sewer District No. 1 (RMSD #1), assessing Mandatory Minimum Penalties (MMPs) totaling $336,000 for violations of National Pollutant Discharge Elimination System (NPDES) permit limits at the Richmond Water Pollution Control Plant (RWPCP). These violations occurred between July 2022 and December 2023 during periods of plant upset conditions.
As authorized by State policy, the Order allows up to 50 percent of the total liability (i.e., $168,000) to be directed toward an eligible Supplemental Environmental Project (SEP), with the remaining $168,000 to be paid to the State Water Pollution Cleanup and Abatement Account.
On May 27, 2025, the City Council reviewed the Stipulated Order in Closed Session and voted to accept its terms. The Order was subsequently posted on the State Water Board’s website for a 30-day public comment period. No public comments were received, and the Water Board issued the final Order on July 9, 2025.
The City has selected the Watershed Rangers Program, administered by KIDS for the BAY (a project of Earth Island Institute), as its SEP. This program will engage underserved elementary schools in Richmond in a series of trash cleanups, watershed stewardship activities, and environmental education projects that raise awareness of water quality and non-point source pollution.
City staff are now requesting that the City Council adopt a resolution authorizing the approval of a $168,000 contract with Earth Island Institute (KIDS for the BAY) to implement the SEP.
COST RECOVERY EFFORTS:
The City has submitted a formal demand letter to Veolia Water, the contracted operator of the Richmond Water Pollution Control Plant, seeking full reimbursement of the $336,000 penalty amount associated with the NPDES permit violations.
September 16, 2025
DocID #52261v1
SYNERGISTIC POLICIES:
Not Applicable
DOCUMENTS ATTACHED:
Attachment 1 – Resolution – Stipulated Payment for SEP
Attachment 2 – Contract – Earth Island Institute (Kids for the Bay) Attachment 3 – Transmittal Letter – California State Waterboard Attachment 4 – Settlement Agreement R2-2025-1019