Council Moves Ahead To Secure Funding For Sewer Design Plans

The Malibu City Council agreed on Tuesday to move forward on the formation of a Community Facilities District, the first of many steps needed to finance the design of the proposed Civic Center Wastewater Treatment Facility.

In a 5-0 vote, the council agreed to pass a resolution stating the council’s intention to form a Community Facilities District (CFD), which will be made up of select commercially zoned property owners in Civic Center, who are willing to finance the sewer.

“Do we have a choice? That’s the issue,” Malibu Mayor Laura Zahn Rosenthal said just before the vote.

Forming the district

Under a Memorandum of Understanding with the Regional Water Quality Board, the city is required to meet strict timelines to ensure that progress is being made on the design and construction of the sewer.

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 council will vote on the formation of the CFD at its Aug. 13 meeting, which will include a public hearing. If the council votes to begin forming the district and collects waivers from participating property owners, an election could be held within a week or so, according to city staff.

Only landowners within the district who are registered to vote can cast a ballot on the issuing of the bonds and the special tax.

Once formed, the Community Facilities District can levy a special tax or issue bonds to pay for the sewer.

Design costs

The council also voted to delay a vote on approving $1.5 million in design services to engineering design consultant, RMC Water and Environment, to complete the Environmental Impact Report and final design for the sewer. That vote will take place on Aug. 13.

City Manager Jim Thorsen said the city has already spent $2.5 million on design services for the facility.

The additional $1.5 million is needed to keep the design plans on schedule, Thorsen said, who added that the money would be reimbursed by the CFD, if it is formed. That cost could rise up to $6.5 million, he said.

Thorsen said the city is working to get waivers from commercial property owners who are willing to join the CFD, which could speed up the process of formation.

Councilmembers Joan House and Skylar Peak said the city has paid enough for the design plans.

Thorsen said if the funds are not allocated, the project will fall behind schedule.

“Falling behind means we will not be able to make up that time. What that means for the Regional Water Quality Board, I’m not sure,” Thorsen said.

Mayor Pro Tem Lou La Monte said the city is moving forward on the project.

“We’re doing everything we are supposed to do. We can’t take half our reserve and invest it in this project, unless we know there is money coming back to us,” La Monte said.

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.

'Take a stand and say no'

Earlier in the meeting, Julie Eamer of Malibu said the problem lies with decisions made by an earlier City Council, and that it is up to the current council to fix the situation.

“Are you kidding? This is the reason why this city incorporated was to stop the sewers. I encourage you all to re-read the Malibu General Plan,” Eamer said.

She said it is up to the city to stop the project.

"Take a stand and say no," Eamer said.

David Reznick of the Malibu Bay Company said he is willing to sign the waiver, and that he has heard other properties owners in Civic Center

Don Schmitz, who was representing the Malibu La Paz project, said the project is not subject to the moratorium and that his clients will be moving forward even if the Wastewater Treatment Center does not move forward.

“To say that the city is in collusion with developers to have a sewage treatment plant is like saying Custer was a Native American advocate. It is ridiculous. We have to do this, and it is for the existing commercial development more than anything else,” Schmitz said.