Council approves $6.5M for sewer design

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Commercial property owners in the Civic Center will vote in November to pay a special tax to fund the system’s design. If the vote fails, the city would be responsible for the funding.

Melissa Caskey / The Malibu Times

Despite a consensus that the state is wrongly forcing the City of Malibu to construct a centralized wastewater treatment system in the Civic Center, the City Council voted 4-1 Monday night to move forward with the first phase of the project, required to be completed by November 2015.

As a part of implementing “Phase One,” the city established a Community Facilities District (CFD), under which it hopes to levy a special tax on 15 commercial property owners who own approximately 76 acres of land in the Civic Center. The city estimates it will collect $6.5 million in funds from the tax to pay for the system’s design.

The city has spent $2.54 million to date on the design of the wastewater treatment facility, and anticipates that an additional $4 million will be needed for an environmental impact report (EIR), construction documents and to obtain permits, according to a staff report on the item. That funding has thus far been paid for by the city, but commercial property owners in the Civic Center are expected to pick up the expense by approving the CFD on Nov. 15—at a cost of $12,500 per commercial acre—to keep the city’s plan moving forward. The tax is expected to pass with at least 75 percent approval, according to City Manager Jim Thorsen. Each property owner will get one vote per acreage of land.

Assistant City Manager Feldman emphasized that Phase One bears no effect on residential property owners in the Civic Center and volunteers money from commercial owners in order to keep the city from carrying the financial burden.

The creation of the CFD stems from a moratorium placed on the Civic Center by the Los Angeles Regional Water Quality Control Board in 2011 that does not allow for development in the area until a new wastewater treatment system is implemented. The state claims that wastewater from the Civic Center is trickling down and polluting nearby ocean water.

But Hogin argues the Los Angeles RWQCB utilized outdated science in its implementation of a moratorium. When the City of Malibu conducted its own study on wastewater treatment in the Civic Center and took it back to the board, the RWQCB decided to stick with “old science” versus “new science,” Hogin said.

“We believe that we will treat the wastewater [with the new system] and it will not have any impact on ocean water,” City Attorney Christi Hogin said.

If Phase One proves Hogin’s claim, she hopes the state will not require Malibu to continue on with Phases Two and Three under which residential voters are set to become involved in 2019.

“This is the perfect example of triumph of dogma over verifiable truth,” Councilmember John Sibert said.

The council heard an array of concerns from public speakers, including David Reznick, the president of Malibu Bay Company and a representative of several commercial property owners in the CFD.

Reznick was certain the owners would pass the special tax come November, but urged the city to not fall behind on its timeline to complete construction by late 2015. In a staff report prepared by Assistant City Manager Reva Feldman, the city acknowledged hitting a bump in the timeline’s goals when it failed to gather necessary waivers from each property owner so that an immediate vote on the tax could be held, as opposed until November.

“We have confidence that the CFD will pass, and by the time it does we’ll be another three months behind in completing the tasks in the MOU,” Reznick told council members. “If the council is interested in working with property owners to create joint funding to continue these studies so the city doesn’t fall behind the timeline that’s in the MOU, myself and other properties owners would like to sit down and chat about trying to do that.”

Councilmember Lou La Monte said he welcomed sitting down to brainstorm with Reznick and property owners.

Andy Lyon, a former candidate for City Council, remained skeptical of the CFD’s formation and the science behind the water treatment.

“Fifteen people get to decide whether Malibu gets sucked into this sewer thing,” Lyon said. “Whole turds is what it’s going to be … floating down into the [Malibu Lagoon.]”

Councilmember Skylar Peak cast the lone vote against the resolution. Peak did not comment on the agenda item while City Council was in session, but after the meeting Peak said he believes Malibu should come up with a better long-term plan for water treatment.

“We should consider alternatives,” Peak said. “The city needs a 30-year-plan.”

Each council member, along with Hogin, said they believe the Civic Center is not polluting the ocean, but city officials appear to want to avoid legal troubles by following the MOU with the state.