The Malibu City Council is expected on Monday to vote on whether to declare its intention to establish a Community Facilities District, which would reimburse the city for design and other initial costs for the proposed Civic Center Wastewater Treatment Facility.
The Community Facilities District (CFD), which will be comprised of select commercially zoned property owners, who are willing to contribute, within the Civic Center, is expected to pay for the design and Environmental Impact Report (EIR) for the sewer.
An affirmative vote by the city council will not form the district, but merely take the next step in the process of putting together a CFD.
Separately, the council will also consider a $1.5 million contract with the engineering design consultant, RMC Water and Environment, to complete the EIR and final design.
The funds are needed to keep the project on schedule, according to a memo written by Malibu Public Works Director Robert Brager.
In May, the council approved a Bond Counsel Agreement with Stradling, Yocca, Carlson & Rauth for bond counsel services to help establish a Communities Facilities District (CFD), which will be used to fund the design of and environmental work for the planned sewer.
The council also approved an agreement with Stone & Youngberg to provide investment banking and underwriting services, as well as an agreement with David Taussig and Associates, Inc. for tax consultant services associated with the creation of the district.
In 2010, the State Water Board imposed a civic center septic prohibition that required a central wastewater facility to be constructed for the Civic Center properties. The prohibition area, which included some 500 properties, mandated that the owners cease discharge into their septic systems.
The commercial properties within the Civic Center, which are in Phase 1, are required to connect to a central wastewater facility by 2015. The residential properties, which are in Phase 2, are required to connect by 2019.
In August of 2011, the City of Malibu and the Regional Water Quality Board entered into a Memorandum of Understanding (MOU) that allowed more flexibility in the phasing of the project, but mandated that the city meet strict timelines to ensure that progress is being made on the design and construction.
Malibu has already paid $2.5 million for ongoing design, according to City Manager Jim Thorsen. That cost could rise to $6 million.
During the May 30 meeting, Councilmember Lou La Monte said the city should not pay for the design and other costs from its coffers.
“The people that are benefiting from it are the ones that should begin to start putting money up," La Monte said.
The proposed CFD would be comprised of commercial property owners who would finance the remainder of the design costs and reimburse the city for a portion of funds that have been spent. Tuesday's decision does not require any residential Phase 2 areas, such as Serra Canyon, Malibu Colony, and the Civic Center Way condos, to participate in the CFD.
The final construction of the wastewater treatment facility would be dependent upon the formation of an Assessment District comprised of all Phase 1 commercial properties, according to the city.
Malibu Patch will have more on this story after Monday night’s meeting.