June 16, 2026
Public Works
DATE: June 16, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, Director of Public Works/City Engineer Tawfic Halaby, Deputy Director of Public Works
Bradley Harms, Environmental Manager
Subject:
Joint Powers Agreement for Participation in the Contra
Costa County Regional Alternative Compliance System
FINANCIAL IMPACT: Initial fiscal impacts associated with participation in the Regional Alternative Compliance (RAC) System are
expected to be minimal and limited to staff time and
administrative support. Any future project-specific costs associated with use of the RAC System would be funded
through existing project budgets or applicable enterprise funds. The RAC System is intended to be financially
supported over time through compliance unit transactions and associated operations and maintenance fees. This
action has no immediate impact on the General Fund.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Public Works Department is requesting City Council
approval of a Joint Powers Agreement (JPA) to allow the City to participate in the Contra Costa County Regional Alternative Compliance (RAC) System and provide an
additional compliance pathway for Municipal Regional
Permit (MRP) Provision C.3 stormwater treatment
requirements.
AGENDA
REPORT
June 16, 2026
RECOMMENDED ACTION:
ADOPT a resolution to APPROVE a Joint Powers
Agreement for participation in the Contra Costa County
Regional Alternative Compliance System, which provides
an off-site stormwater treatment compliance option for
projects that cannot feasibly meet on-site stormwater
treatment requirements; and AUTHORIZE the City
Manager, or their designee, to execute the agreement
and any related documents necessary to implement the
program – Public Works Department (Bradley Harms
510-307-8094).
DISCUSSION:
The City of Richmond is subject to stormwater management requirements under the Municipal Regional Stormwater Permit. This permit is issued by the San Francisco Bay Regional Water Quality Control Board and applies to municipalities in the Bay Area, including the City of Richmond. The permit regulates stormwater runoff from municipal storm drain systems to help reduce pollutants entering local creeks, waterways, and San Francisco Bay.
Provision C.3 of the Municipal Regional Stormwater Permit applies to certain new development and redevelopment projects. It requires eligible projects to incorporate stormwater treatment measures, such as low impact development and green stormwater infrastructure, to treat runoff before it enters the storm drain system. These requirements are intended to reduce pollution, improve water quality, and support compliance with state and federal clean water regulations.
Many projects can meet these requirements by installing stormwater treatment features on-site, such as bioretention areas, flow-through planters, pervious pavement, or other green infrastructure. However, some projects face physical, site, or operational constraints that make full on-site treatment infeasible or cost-prohibitive. Examples may include limited parcel size, existing utilities, soil conditions, access constraints, or other development limitations.
The Contra Costa County Regional Alternative Compliance System was developed to provide an additional compliance option in these circumstances. Instead of requiring all stormwater treatment to occur on the project site, the Regional Alternative Compliance System allows eligible projects to meet stormwater treatment obligations through approved off-site green stormwater infrastructure projects.
Under this system, approved off-site green stormwater infrastructure projects generate “compliance units.” Compliance units function like stormwater treatment credits. A developer or public agency with a project that cannot feasibly meet all required stormwater treatment on-site may purchase compliance units from an approved off-site project. The revenue from those purchases helps fund construction, operation, and
June 16, 2026
maintenance of regional stormwater improvements that provide equivalent or greater water quality benefits.
The proposed Joint Powers Agreement establishes the governance structure needed to administer the Regional Alternative Compliance System. This includes program oversight, financial management, coordination among participating agencies, and the framework for generating, tracking, and using compliance units. There are currently 13 participating agencies including Antioch, Concord, Contra Costa County, Hercules, Martinez, Moraga, Oakley, Orinda, Pinole, Pittsburg, Pleasant Hill, San Palbo, and Richmond should Council approve this item. The Joint Powers Authority Board will include members of these agencies who will administer the program through an appointed manager.
Participation in the Regional Alternative Compliance System would not eliminate the City’s existing stormwater requirements. It would provide an additional compliance option for projects where on-site stormwater treatment is infeasible or cost-prohibitive. If the City participates, Richmond may allow eligible projects to use approved off-site compliance units when appropriate. If the City does not participate, projects in Richmond would continue to rely on traditional on-site compliance approaches.
The Regional Alternative Compliance System may also allow stormwater treatment improvements to be located where they provide greater regional water quality benefit. In some cases, off-site green stormwater infrastructure may be more cost-effective or environmentally beneficial than small, constrained on-site treatment facilities. This approach also allows stormwater infrastructure planning to occur on a broader regional basis rather than project by project.
Because the program requires a shared governance and financing structure, participating agencies must enter into the Joint Powers Agreement before the system can be fully implemented. Administrative costs are expected to be shared among participating agencies, and the program is intended to become supported over time through compliance unit transactions and associated operations and maintenance funding. The Joint Powers Authority Board has anticipated a budget of approximately $30,000 to cover a manager, bookkeeper, auditor and technical consultant; the share per jurisdiction is anticipated to be no more than $3,000 per year. In addition, each jurisdiction will be responsible for the investment of the tracking and administration of projects at a projected cost of no more than $10,000 per year.
City staff recommend approval of the Joint Powers Agreement because participation would give Richmond a flexible, legally structured option for meeting stormwater treatment requirements when on-site compliance is not feasible. The program would support regulatory compliance, provide additional tools for development and public infrastructure projects, and allow the City to participate in a regional approach to green stormwater infrastructure implementation
June 16, 2026
SYNERGISTIC POLICIES:
Participation in the Contra Costa County RAC System provides the City with an additional compliance pathway for meeting MRP Provision C.3 requirements while maintaining flexibility in its application. Execution of the Joint Powers Agreement enables access to the program and establishes the governance structure necessary for its implementation.
DOCUMENTS ATTACHED:
Attachment 1 – Contra Costa County RAC System Fact Sheet Attachment 2 – Contra Costa County RAC System Overview
Attachment 3 – Resolution
Attachment 4 – Draft Joint Powers Agreement