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CITY OF SAN LEANDRO <br />STAFF REPORT <br />DATE: March 17, 2008 <br />TO: John Jermanis, City Manager <br />FROM: Michael Bakaldin, Public Works Director <br />BY: John Camp, Environmental Services Supervisor <br />SUBJECT PROJECT/PROJECT DESCRIPTION <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL <br />Jo Jermanis <br />Ci anager <br />RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO SIGN AND <br />FILE, FOR AND ON BEHALF OF THE CITY OF SAN LEANDRO, A CAL/EPA GRANT <br />APPLICATION TO IMPLEMENT THE ABOVEGROUND PETROLEUM STORAGE ACT <br />(APSA) AND AN AGREEMENT WITH CAL/EPA ACCEPTING DELEGATION AND <br />AGREEING TO IMPLEMENT THE APSA <br />SUMMARY AND RECOMMENDATION <br />Staff recommends that the City Council approve a resolution to authorize the City Manager to <br />apply for a Grant application to the California Environmental Protection Agency (Cal EPA) for <br />program startup funds being distributed from the state's Environmental Protection Trust Fund. <br />Accepting these funds will allow staff to assume oversight of the Aboveground Petroleum <br />Storage Act (APSA) program and obtain startup financing for the initial two years. <br />Staff further recommends that the City Council approve this resolution to authorize the City <br />Manager to execute an agreement with Cal EPA regarding the use and accounting of the grant <br />funds and statutory implementation of the APSA. <br />BACKGROUND <br />When the City became a Certified Unified Program Agency (CUPA) in 1997, the regulation of <br />aboveground storage tanks was delegated to the State Water Resources Control Board (Board) <br />and the Regional Water Quality Control Board (Boards). The Boards were also delegated by US <br />EPA to implement the federal Spill Prevention Control & Countermeasure rule (SPCC) provided <br />in 40CFR112. <br />To fund the program, the Boards created the Environmental Protection Trust Fund (EPTF) and <br />collected annual fees from the regulated facilities. The City's only involvement in the <br />Aboveground Storage Tank (AST) program was to refer facilities subject to the rule to the <br />Boards for follow-up. Due to staffing and budget constraints, the Boards did not implement the <br />program at the state level. Subsequently US EPA rescinded state authorization of the Federal <br />SPCC rule and City staff began referring subject facilities directly to US EPA. However, the <br />state law to implement a state program and the approximately $7.5 million collected in fees over <br />7 to 10 years remained at the state level and Cal EPA recognized that adequate staffing does not <br />