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our LOCAL SEWAGE SYSTEM santa clarita valley sanitation district HOW OUR SEWAGE SYSTEM WORKS FOLLOW THE FLOW 3 * * State Permit with Strict Standards Required for Discharge to the River* 2 Who operates our Sewer System? The Santa Clarita Valley Sanitation District (SCV Sanitation District) protects public health and the environment through innovative and cost-effective sewage/ wastewater treatment: Serves 250,0000 people in the Santa Clarita Valley, including the City and unincorporated areas Conveys, treats and recycles 20 million gallons of sewage every day -- enough to fill the Rose Bowl every five days Converts waste into recycled water, energy and recycled materials The SCV Sanitation District Board of Directors is comprised of two members of the Santa Clarita City Council and the Chair of the Los Angeles County Board of Supervisors. Property owners who discharge sewage to the system pay for sewer services through a service charge collected on property tax bills. New users pay a connection fee before connecting to the sewer system. 2 3 Who produces sewage and pays for its collection and treatment in the Santa Clarita Valley? Residential and commercial properties produce sewage every day. Valley property owners pay for their sewage to be safely collected, transported and treated at the Valley s wastewater treatment plants. Under the U.S. Clean Water Act, property owners must pay their proportionate cost to clean their sewage. What is in our sewage? All the water and solids from toilets, drains, showers, sinks, garbage disposals and industrial and commercial processes. Who sets the standards for the allowable levels of salt (chloride) and other constituents in our treated sewage discharged to the Santa Clara River? The Federal Government and the State of California.

SANTA CLARITA VALLEY S CHLORIDE (SALT) PROBLEM The State requires the Santa Clarita Valley to meet strict salt limits for water discharge to Santa Clara River or face steep fines that would ultimately be paid for by Valley property owners connected to the sewerage system. Imported Water 65 mg/l Chloride (Salt) Local Potable Water Groundwater Wells 65 mg/l Chloride (Salt) Potable Water Water Suppliers Potable Water 65 mg/l Chloride (Salt) Ventura County Wastewater (Sewage) Los Angeles County Wastewater Disinfection using Chlorine adds 0 mg/l Chloride Treatment Plants 0 mg/l Chloride (Salt)* Sewage Homes and Businesses (Salt) add 45 mg/l Chloride (Salt) Recycled Water through normal daily The State of California has set a strict legal limit of 00 mg/l of Chloride (Salt) for recycled water to the river Recycled Water 20 mg/l Chloride (Salt) activities *The removal of approximately 8,000 automatic water softeners has resulted in a nearly 50 mg/l reduction in chloride Santa Clara River Our Santa Clarita Valley (Saugus and Valencia) s do not meet strict State limits for salt in the recycled water discharged to Santa Clara River. Santa Clarita Valley Sanitation District (SCV Sanitation District) has challenged the State s chloride (salt) limits at every opportunity for more than a decade; but, the State rejected most of the changes we sought. In May 20, the State issued Notices of Violation for our s and in November 202, the State proposed a fine of $280,000. In March 203, the SCV Sanitation District negotiated the fine down to $225,000. The fine will be paid by property owners who use the sewer system. Our PROBLEM:

Key Events Chloride (Salt) in the Santa Clarita Valley The timeline below lists the key actions the SCV Sanitation District Board has taken to preserve local control and to protectitscustomers thevalley spropertyowners from unreasonable State fines and to develop the smallest and least costly solution to meeting the State s legal requirements, since 989, when the State set strict limits on the salt level in the Valley s wastewater (sewage) discharge to the Santa Clara River. Wastewater (Sewage) Treatment Plants Built Two plants built to treat wastewater for the growing Santa Clarita Valley. State Drought Exception Valley is exempted from meeting strict 00 mg/liter salt limit due to State s drought. 3 SCV Sanitation District (SCVSD) Again Challenges State Salt Limit SCVSD challenges State s 00 mg/liter salt limit, conducts scientific studies to justify higher limit, and develops Alternative Water Resources (and salt) Management Plan. State Re affirms Salt Limit State adopts strict 00 mg/liter salt limit and compliance schedule. 5 6 SCVSD Presents Less Costly Options for Public Review SCVSD evaluates all feasible options to meet State s 00 mg/liter salt limits and avoid additional steep fines. A draft environmental review and facilities plan is scheduled for public review in Spring 203. State Sends Notices of Violation & Issues Fine State sends Notices of Violation to the SCVSD threatening multi million dollar fines if SCVSD does not comply with State salt limits and the approved timeline. State Issues $225,000 fine. Fines are ultimately paid by property owners 8 0 962 967 989 990 997 997 2000 2002 2003 2008 2009 200 20 202 203 4 7 9 2 State Sets Salt Limit State sets strict 00 mg/liter limit on salt levels in Valley s wastewater (sewage). SCV Sanitation District (SCVSD) Challenges State Salt Limit SCVSD advocates for higher salt limit of 43 mg/liter, but State rejects due to rising salt levels in Santa Clara River from automatic water softeners and objections from Ventura County Agriculture. Alternative Water Resources Management Plan Rejected by SCV Sanitation District Board SCVSD attempts to gain public support for Alternative Plan to meet State salt limits. Due to community opposition, SCVSD Board of Directors requests more choices. Water Softener Ban Reduces Valley s Salt Problem By 203, Santa Clarita residents remove over 7,900 automatic water softeners, greatly reducing Valley s salt levels and cost of new facilities needed to comply with the State limit.

State enforcement WHO MANDATES THE CHLORIDE (SALT) LIMIT? FEDERAL AND STATE GOVERMENT WHO APPOINTS THE FEDERAL AND STATE REGULATORS? REGULATORS U.S. Environmental Protection Agency (Clean Water Act) State Water Resources Control Board (5 members) APPOINTED BY U.S. President Governor of CA Modern wastewater mandates began in 972 with the Federal Clean Water Act, with the goal of restoring and maintaining the chemical, physical and biological integrity of the nation s waterways. U.S. Environmental Protection Agency implements the Clean Water Act and delegates its authority to the states. In California the State Water Board implements the Federal Clean Water Act as well as the State s Porter Cologne Act. The State Water Board develops statewide policy and regulations for water quality and allocates water rights. State Regional Water Quality Control Board, L.A. Region Governor of CA (7 members) HAVE OTHER AREAS BEEN FINED BY THE STATE OR LOST LOCAL CONTROL? WHO ENFORCES THE STATE CHLORIDE (SALT) MANDATE? State of California (which sets limits, enforces timelines, and issues fines) YES Lancaster, Palmdale and Los Osos. The Governor appoints the seven-member Regional Board, whose members serve four-year terms once they are confirmed by the State Senate. DOC#295899 The California Regional Water Quality Control Board, L.A. Region issues permits for the Valley s water reclamation plants. FINES In Lancaster and Palmdale, property owners paid both $5 million in State fines (because they did not act in time to meet State deadlines) and also paid $466 million to build new treatment facilities. LOSS OF LOCAL CONTROL The State took control away from local authorities in the community of Los Osos in San Luis Obispo County when the community refused to build a new sewer system and treatment plant. The State issued an $ million fine and passed legislation that took authority for the project away from the local district and gave it to the County. Recent State Fines in SANTA CLARITA Valley Who Must Comply WITH STATE S CHLORIDE (SALT) LIMIT? SCV Sanitation District (which manages the valley s sewage/wastewater) and ultimately, SCV property owners (who discharge to the system) In November 202, the State proposed a $280,000 fine because the Santa Clarita Valley failed to meet the State s timeline for meeting the State s salt limit. In March 203, the SCV Sanitation District negotiated the fine down to $225,000. Ultimately, Valley property owners who use the sewer system will pay this fine.

OUR CHOICES RISK LOW MEDIUM HIGH Steep Fines & Loss of control A - Do Nothing B - File a Lawsuit C - CONTINUE TO CHALLENGE D- Choose a Chloride (SALT) Compliance Project Meeting the State-Mandated Chloride (Salt) Limit in the Santa Clarita Valley A Do nothing State issues fines that property owners must pay State fines for being above State salt limit and missing State deadlines Risk losing local control HIGH RISK/$$$$$ Court appointed agent decides what compliance facilities to build to meet State Chloride (Salt) limit Limited local public involvement Additional cost to SCV property owners: State fines and increased sewage fees to fund new compliance facilities Who Pays State Fines if the Santa Clarita Valley Does Not Meet the State s Strict Salt Limit or State Deadlines? SCV Sanitation district Ultimately, property owners in the Santa Clarita Valley who use the Valley s sewage system (which is nearly all of the Valley s residences and businesses) would pay all fines the State imposes for failing to meet the State s chloride (salt) standards, or for failing to meet the State s deadline. Has the SCV Sanitation District Fought the State s Chloride (Salt) Limits? Yes For over 0 years, the SCV Sanitation District has repeatedly challenged the State s chloride (salt) limit for the Santa Clarita Valley. B FIle a lawsuit Very remote possibility of success. U.S. Environmental Protection Agency can issue Federal fines and sue SCV Sanitation District Risk losing local control HIGH RISK/$$$$$ Court appointed agent decides what compliance facilities to build State fines for being above State salt limit and missing State deadlines Legal fees paid by property owners Additional cost to SCV property owners: State fines and federal fines and legal fees and increased sewage fees to fund new compliance facilities What About Choice C? Why is Continuing to Challenge the State a High Risk to Valley Property Owners? State Rejected Local Challenges The State has repeatedly rejected the SCV Sanitation District s challenges to the State s chloride (salt) limit. NO FURTHER CHALLENGE TO state IS FEASIBLE There is no basis for further challenges to the State s strict chloride (salt) limit for discharges of the Valley s treated sewage (wastewater) into the Santa Clara River. C continue to challenge state-mandated Salt limit HIGH RISK/$$$$$ The Sanitation District has repeatedly challenged the State s chloride (salt) limit. SCV Sanitation District fought State chloride limit since 997. There is no basis for further challenges to the State s strict chloride (salt) limit for discharges of the Valley s treated sewage (wastewater) into the Santa Clara River. Additional cost to SCV property owners: State fines and federal fines and increased sewage fees to fund new compliance facilities Why is a Lawsuit such a High Risk to SCV Property Owners? Courts back the State s Water Boards The courts have solidly supported the water quality standards set by the State s Regional Water Quality Control Boards. Remote possibility of success Similar lawsuits in the last decade have been unsuccessful. There are very limited acceptable legal grounds for a lawsuit. Delay would cause more State fines that property owners would pay A lawsuit would take more than three years. State fines could be issued for every day and every gallon above the State s strict salt limit, and for missing the State s deadlines. Federal Government can also issue fines property owners would pay The U.S. Environmental Protection Agency can also issue Federal fines and sue the SCV Sanitation District. LEGAL COSTS A lawsuit could end up costing SCV property owners millions of dollars in legal fees. D ADOPT A PLAN TO COMPLY WITH state-mandated SALT LIMIT Locally-controlled SCV Sanitation District selects most cost-effective and environmentally sound solution Maintain local control BEST CHOICE/$$$ Local public participation and review with extensive public input, SCV Sanitation District decides what compliance facilities to build Additional cost to SCV property owners: Increased sewage fees to fund new compliance facilities High risk of losing local control If the lawsuit failed, the State or U.S. Environmental Protection Agency could take away control of the Valley s sewage system from the SCV Sanitation District and ask a court to appoint an agent that would decide what compliance facilities to build. The best choice that protects SCV property owners from increasing State fines and potential loss of local control is selecting a plan that complies with the State s strict chloride (salt) limit, before the State s deadline. Federal and State water quality laws, backed by extensive regulations and years of legal decisions, provide a very definite road map of the results, penalties and fines that would result from the above choices.

DRAFT CHLORIDE COMPLIANCE FACILITIES PLAN FINAL ALTERNATIVES FOR MEETING STATE-MANDATED CHLORIDE (SALT) LIMIT Microfiltration/Reverse Osmosis Removes salt from the treated sewage Salt is concentrated into a waste product called brine that we need to get rid of Advanced treatment and brine disposal Watershed Management Alternatives, 2, and 3 Alternative 4 Phased Alternative Water Resources Management PHASE - Capital cost $0 million Ultraviolet light disinfection Salt management facilities Supplemental water Ultraviolet Light Disinfection Kills harmful microorganisms Does not add salt Eliminates chlorination by-products Disposal of Brine Alternative - Alternative 2 - Deep well injection field Alternative 3 - Trucking Injection of Brine one mile below ground PHASES and 2 - Capital cost $225 million Ultraviolet light disinfection Valencia MF/RO Second-Pass RO Salt management facilities Supplemental water Microfiltration/Reverse osmosis RO Product Water Saugus Disposal of brine through deep well injection 37 Miles to Brine L.A. Basin DWI Site 5 40 (average)-90 (max) trucks per day L a k e P i r u V e n t u r a C o u n t y L o s A n g e l e s C o u n t y 5 Supplemental Water 0 0.5 Miles 39 to 53 miles to L.A. Basin Blended Groundwater RO Product Water to Ventura County UV 26 S a n t a l C a r a R i v e r MF/RO Valencia Saugus River Discharge Location West Piru Well Field East Piru Well Field Brine Conveyance DWI Site Capital cost $50 million Capital cost $30 million Capital cost $05 million Phase I Phase II 0 Miles these alternatives comply with State s Strict Salt limit of 00 mg/l REQUIRES MODification OF state salt LIMIT

Project Description Less Than Significant Environmental Impacts Less Than Significant Environmental Impacts after Mitigation Santa Clarita Valley Sanitation District Meeting the State-Mandated Chloride (Salt) Limit in Santa Clarita Valley DRAFT FACILITIES PLAN: FINAL FOUR ALTERNATIVES COMPARISON NO Project Alternative: Refusing to comply with the State s mandated Chloride (Salt) Limit in the SC Valley is not an option. Non-compliance would result in SC Valley property owners paying State fines for violating the State-mandated chloride (salt) limit, missing State deadlines, and also paying the costs of a chloride (salt) compliance project that would be selected by the State. Alternative Alternative 2 Alternative 3 MF/RO with Brine Disposal MF/RO with Brine Disposal MF/RO with Brine Disposal via via Deep Well Injection via Trucking Chlorine Disinfection, Microfiltration/Reverse Osmosis (MF/RO), Brine Disposal via 37 mile to LA Basin Ultraviolet Light Disinfection, Microfiltration/Reverse Osmosis (MF/RO), Brine Disposal via Deep Well Injection Ultraviolet Light Disinfection, Microfiltration/Reverse Osmosis (MF/RO), Brine Disposal via Trucking 39 miles to LA Basin Alternative 4 Water Resources Management (Phased AWRM) Phase I Phase I & II Ultraviolet Light Disinfection, Salt Management in Ventura County, Supplemental Water for Dilution Air Quality Ultraviolet Light Disinfection, Microfiltration/Reverse Osmosis (MF/RO), Brine Disposal via Deep Well Injection, Salt Management in Ventura County, Supplemental Water for Dilution Significant and Unavoidable Environmental Impacts Air Quality (Construction Only) Air Quality (Construction Only) Air Quality (Construction Only) None Air Quality (Construction Only) Estimated Annual Energy Use,00,000 kwh/year,300,000 kwh/year 7,700,000 kwh/year 7,200,000 kwh/year 9,200,000 kwh/year Equivalent Energy Use 4 hrs/day, 75 days/yr 4 hrs/day, 77 days/yr 4 hrs/day, 20 days/yr 4 hrs/day, 7 days/yr 4 hrs/day, 30 days/yr Carbon Footprint (Carbon Dioxide Equivalent, CO 2 e) 3,249 CO 2 e Metric Tons/year 3,307 CO 2 e Metric Tons/year 5,20 CO 2 e Metric Tons/year 5,034 CO 2 e Metric Tons/year 5,620 CO 2 e Metric Tons/year Estimated Capital Cost $50 Million $30 Million $05 Million $0 Million $225 Million Estimated Annual Operations and Maintenance Costs $4.3 Million/year $4. Million/year $8.7 Million/year $3.8 Million/year $5.5 Million/year Projected Annual Sewer Service Charge for FY 209-20 per Single Family Home for Existing Only 2 N/A $270 per year $270 per year $270 per year $270 per year Projected Annual Sewer Service Charge Increase for FY 209-20 per Single Family Home 3 N/A $40 per year $60 per year $25 per year $265 per year Projected Annual Sewer Service Charge for FY 209-20 per Single Family Home 4 N/A $40 per year $430 per year $395 per year $535 per year Estimated Connection Fees No Increase in Connection Fees Due to the Chloride Treatment Project is Recommended Until Fiscal Year 209-20. Complies with State- Mandated Chloride (Salt) Limit for Santa Clarita Valley Yes Requires Extension of State Deadline Yes Requires Extension of State Deadline Yes Requires Extension of State Deadline No Requires Changes to State Chloride (Salt) Limits and Extension of State Deadline No Requires Changes to State Chloride (Salt) Limits and Extension of State Deadline Recommended Project in Plan No Yes Yes Yes Yes Expected date project will begin operation. 2 Projected rate for FY 209-20 based on assumed increases due to inflation. 3 These projections are based on best estimates of the added cost associated with the start-up of facilities and the beginning of debt repayment. It is proposed that rate increases be implemented in equal increments over the intervening years. 4 More information on sewer service charges and on rates for other land uses is available at the Sanitation Districts' website, www.lacsd.org.

DRAFT CHLORIDE COMPLIANCE FACILITIES PLAN RECOMMENDED ALTERNATIVES FOR MEETING STATE-MANDATED CHLORIDE (SALT) LIMIT Microfiltration/Reverse Osmosis Removes salt from the treated sewage Salt is concentrated into a waste product called brine that we need to get rid of Advanced treatment and brine disposal Alternatives 2 and 3 Alternative 4 Watershed Management Phased Alternative Water Resources Management PHASE - Capital cost $0 million Equivalent Annual cost $. million/year Ultraviolet light disinfection Salt management facilities Supplemental water Ultraviolet Light Disinfection Kills harmful microorganisms Does not add salt Eliminates chlorination by-products Disposal of Brine Alternative 2 - Deep well injection field Alternative 3 - Trucking Injection of Brine one mile below ground Valencia MF/RO Second-Pass RO RO Product Water Saugus 40 (average)-90 (max) trucks per day 39 to 53 miles to L.A. Basin PHASES and 2 - Capital cost $225 million Equivalent Annual cost $20.4 million/year Ultraviolet light disinfection Salt management facilities Supplemental water Microfiltration/Reverse osmosis Disposal of brine through deep well injection Brine L a k e P i r u 5 Supplemental Water Capital cost $30 million Equivalent Annual cost $2.7 million/year DWI Site 5 Capital cost $05 million Equivalent Annual cost $5.6 million/year Blended Groundwater River Discharge Location West Piru Well Field RO Product Water to Ventura County UV 26 East Piru Well Field V e n t u r a C o u n t y L o s A n g e l e s C o u n t y S a n t a l C a r a R i v e r MF/RO Brine Conveyance DWI Site Valencia Saugus 0 0.5 Miles these alternatives comply with STATE s Strict SALT LImit of 00 mg/l Phase I Phase II REQUIRES MODIFICATION OF STATE SALT LIMIT 0 Miles

What will be the estimated cost increase for typical users? Type of Use FY 9/20 Baseline before Chloride Project Alternative 2 (DWI) Alternative 3 (trucking) Alternative 4 (Phased AWRM) Phase I (No RO) Phases I & II Single Family Home $270 $40 $60 $25 $265 Condominium $203 $05 $20 $93 $98 Store/Wholesale 5,000 ft 2 $55 $265 $300 $235 $500 Office Building 5,000 ft 2 $,05 $525 $600 $465 $990 Warehouse 20,000 ft 2 $820 $420 $480 $360 $780 Laundromat,000 ft 2 $3,848 $,995 $2,280 $,78 $3,776 Shopping Center 5,000 ft 2 $7,85 $4,050 $4,635 $3,65 $7,680 Restaurant (Stand alone on separate parcel) 3,000 ft 2 $7,76 $3,723 $4,254 $3,324 $7,044 The Adopted Service Charge for FY 203/204 is $247.