Loading...
HomeMy WebLinkAboutBOARD MINUTES 04-24-97 113 MINUTES OF ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 24, 1997 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular session, in the Second Floor Conference Room of the District Offices, at 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 9:08 a.m. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Hockett, Menesini ABSENT: Members: Rainey, Boneysteele Members Rainey and Boneysteele had advised staff they would be unable to attend this meeting and had requested to be excused. 2. PUBLIC COMMENTS None 3. RECYCLED WATER COMMITTEE MEETING/BOARD WORKSHOP Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Jim Coe, Associate Engineer I who stated that staff will provide a status report on the Lamorinda Recycled Water Project, an update on the Pleasant Hill (Zone 1) Project, and an overview of the Recycled Water Program administration. President Menesini requested information on the proposed schedule for the Recycled Water Projects. Mr. Coe stated that he would provide the Board with a copy of the contractor's schedule but noted that this schedule could be delayed by weather conditions or other slippages. Mr. Coe proceeded with the update on the Lamorinda Recycled Water Project. East Bay Municipal Utility District (EBMUD) and Central Contra Costa Sanitary District (CCCSD) have joined together to develop the Lamorinda Recycled Water Project. The peak flow to all customers in summer will be 3 MGD of recycled water. There are 38 potential customers. EBMUD capital costs are estimated to be in the range of $10 million to $20 million. Delivery to customers is anticipated in the year 2000. The payback is estimated at 30 years. The bid price for modifications to the CCCSD Treatment Plant is $2.7 million. Discussion followed with regard to the construction, condition, and cathodic protection of the Shell Pipeline. In response to questions from the Board, Mr. Coe stated that based on the EBMUD estimated capital costs, the cost to produce the recycled water will be about $1,1 OO/AF. The average sales price for recycled water is about $700/AF, the same as potable water. EBMUD will be subsidizing the difference between the cost of drinking water and recycled water. Mr. Coe reviewed the community outreach activities which include pre-scoping meetings, focus meetings, scoping meetings, public hearings, and distribution of fact sheets. To date the following public concerns have been identified: . Construction Impacts particularly with regard to Roadways and Paving . Storage Tank Locations . Public Health Issues . Growth Inducement 04 24 97 114 Discussion followed in which President Menesini encouraged staff to do everything possible to inform the public particularly with regard to public health concerns. Mr. Dolan stated that the District produces excellent quality recycled water because it is first treated with ultraviolet disinfection, then chlorine, and finally chemical coagulation and filtration. Member Hockett suggested that copies of the reports and studies be made available at libraries and on the CCCSD or EBMUD web site, but cautioned that there will always be those who will not agree or who have an emotional perspective. Member Hockett stated that it is important to strike a balance. Mr. Dolan stated that as we proceed with the public information effort, we must continually remind people that we are a facility that deals primarily with residential wastewater with few industries. Mr. Coe stated that another concern in the Lamorinda area is run off into the San Leandro Reservoir facility. We believe that we can actually show there will be less impact from run off on the reservoirs because people will use less fertilizers and chemicals. This will be brought out in the California Environmental Quality Act (CEQA) process. Mr. Coe stated that EBMUD will address the growth inducement issue. in the CEOA process. With regard to the status of the CECA process, Mr. Coe stated that the Notice of Preparation and Initial Study have been completed and work is in process on the Draft Environmental Impact Report (EIR). It is anticipated that the public hearing will be held in the fall time frame. EBMUD will be conducting the public hearing at their Board headquarters. The agreement between EBMUD and CCCSD calls for a 50/50 sharing of the costs of the facilities plans and CEOA documents. It is anticipated that construction will be done in 1999 with delivery of recycled water to the first customers in the year 2000. President Menesini stated that although EBMUD seems to have assumed leadership on this joint effort there should be some sharing. Mr. Douglas J. Craig, Planning Division Manager, stated that he has spoken to Mr. David Williams, of EBMUD, on this subject and stressed that when there is press coverage it should be made it clear that this is a shared project. Mr. Williams has indicated that he will do that. In response to a question from President Menesini, Mr. Coe described the staffing and experience of the firms working on the CECA process: Dames & Moore, HY A Consultants, and Orion Environmental Associates. Mr. Coe reviewed the key issues relating to the Draft Principles of Agreement as set forth in the document distributed separately to the Board. Those key issues are: . Capital Cost Sharing . O&M Cost Sharing . Shell Pipeline Ownership With regard to capital costs, Mr. Coe stated that CCCSD will bill EBMUD on a flow proportional basis for existing facilities which will be built by CCCSD in any case for the Pleasant Hill Zone 1 Recycled Water Project. The cost of these facilities will be amortized over thirty years and EBMUD will pay a fixed annual payment regardless of usage. New facilities built by CCCSD will be owned by CCCSD and EBMUD will reimburse CCCSD in a lump sum or amortized payments for 87 percent of cost; the portion attributed to the Lamorinda Recycled Water Project. EBMUD will build and own all its facilities. The capital costs for these facilities is estimated to be in the range of $10 million to $20 million. With regard to O&M costs, EBMUD will pay CCCSD O&M costs apportioned on a flow proportional basis. If no recycled water is used by EBMUD in a particular year, they would pay no O&M costs. Recycled water usage will be measured by a meter at the end of the CCCSD pipe. CCCSD will not subsidize any of EBMUD's O&M or capital costs. CCCSD will finance those costs but they will be reimbursed by EBMUD. With regard to ownership of the Shell Pipeline, Mr. Coe stated that it is proposed that ownership of the Shell Pipeline be transferred to EBMUD. EBMUD would reimburse CCCSD for CCCSD's costs which currently total approximately $56,000. The figure represents costs for easements, soil testing, and related items but does not include 04 24 97 115 CCCSD staff time. The current agreement between EBMUD and CCCSD calls for each district to pay the costs of its own staff time through the planning process. Mr. Coe stated that a key issue is the timing of the transfer of the Shell Pipeline to EBMUD. Mr. Coe requested direction from the Board, stating that transfer condition options could include the following: . EBMUD award of construction contract; . EBMUD completion of construction; or . EBMUD beginning operation of Phase 1. Following a lengthy discussion of the Board's previous direction to negotiate a reversionary clause, EBMUD's adamant position that others be prohibited from purveying water in their service area, the demonstration of good faith by EBMUD with the expenditure of an estimated $10 million to $20 million in capital costs, potential liability to CCCSD should CCCSD retain ownership during EBMUD construction, and inclusion of a first right of refusal clause, it was the consensus of the Board, with Members Rainey and Boneysteele being absent, that a first right of refusal clause be included in the Draft Principles of Agreement. Member Hockett asked a number of questions and made specific suggestions with regard to the wording in the Draft Principles of Agreement. It was agreed, with Members Rainey and Boneysteele being absent, that the words "education, and participation" be inserted on page 2, item 8, following the word "involvement," that 8 new paragraph be added ~elating to the timing of transfer of ownership of the Shell Pipeline at the time of EBMUD issuance of the Notice to Proceed for Phase 1 which comprises one-half to two-thirds of the total project, and that a first right of refusal clause be added. President Menesini requested that the Board be given an opportunity to review the Draft Principles of Agreement again after the attorneys have reviewed it. Mr. Dolan stated that if the Draft Principles of Agreement are acceptable to the our Board and the EBMUD Board, the attorneys will use it to produce the contract. Mr. Coe stated that staff will come back to a regularly scheduled Board Meeting and request Board approval of the Draft Principles of Agreement. At 11 :02 a. m., President Menesini declared a recess reconvening at the hour of 11: 1 0 a.m. Noting the caution expressed with regard to the Draft Principles of Agreement, Mr. Dolan stated that further review could be scheduled at the next Board Meeting or the document could be reviewed in detail at this time. Following discussion in which the importance of having Board buy in prior to presentation of the Draft Principles of Agreement to the EBMUD Board was noted, it was agreed to proceed with review at this time. President Menesini stated that he would like input from the EBMUD Board as well. Mr. Coe proceeded with a detailed review of the Draft Principles of Agreement. In the discussion of the document, it was agreed, with Members Rainey and Boneysteele being absent, that on page 7, item 5, the words "and purveyance" be added following the word "delivery. " Following the review, it was agreed, with Members Rainey and Boneysteele being absent, that the Draft Principles of Agreement be calendared on the May 1, 1997 CCCSD Board Agenda for a review of legal considerations. This matter will be calendared again following review by the EBMUD Recycled Water Committee. Mr. Coe proceeded with the update on the Pleasant Hill (Zone 1) Recycled Water Project. The Pleasant Hill Recycled Water Project will provide 2 MGD of recycled water to a total of 61 potential customers. The capital cost of the project is estimated at $6 million with a 30 year payback. Delivery of recycled water to the first customers is planned for 1 998. Mr. Coe reported that in November 1996, the Engineers' Report was submitted, comments were received in February 1997, the California Department of Health Services (DHS) approval letter was received in April 1997, and the Regional Water Quality Control Board permitting process is expected to be completed in May 1 997. 04 24 97 116 Mr. Coe stated that it is proposed that the Board adopt a District Recycled Water Ordinance which would form a new section, Title 11, of the District Code. A draft of the proposed ordinance was distributed. The proposed ordinance provides that future recycled water connections will be handled by permit rather than contract. A public hearing will be scheduled after input is received from the Regional Water Quality Control Board and the California Department of Health Services. The proposed ordinance clearly defines the goals of the District Recycled Water Program. President Menesini expressed concern that the District Recycled Water Program may require more staff time and cost than simply running the District Treatment Plant. Mr. Coe answered that it would not. Mr. Coe stated that initially staff will be busy but then the administrative costs will go down and only periodic spot checking will be needed. Mr. Coe stated that the Notice to Proceed was issued in April 1997 for CCCSD Treatment Plant modifications. Mr. Coe described the scope of work and stated that the estimated cost is $2.7 million. It is anticipated that this work will be completed in March 1998. In response to a question from President Menesini, Mr. Coe stated that one of the large pumps will be removed and replaced by a smaller more efficient pump to meet the needs of the District Recycled Water Program. The existing large pumps are too big and would not be efficient for the current program. They will be kept for possible use in a future industrial recycled water project. With regard to customer connections, Mr. Coe stated that the design will be 50 percent complete in May 1997, with bid expected in November 1997. It is anticipated that recycled water will be delivered to the first customers (Buchanan Golf Course, Contra Costa County Club, Diablo Valley College, City of Pleasant Hill, and Pleasant Hill Recreation and Parks District) in April 1998. With regard to the District Recycled Water Program administration, Mr. Coe stated that it is proposed that District expertise be developed to staff the program. A cross- departmental steering committee is already in place and functioning. The Plant Operations Department is responsible for producing the recycled water, the Collection System Operations Department is responsible for maintaining and repairing CCCSD pipelines although some outsourcing may be required in specialty areas, the Administrative Department is responsible for accounting and bill collecting, and the Engineering Department is responsible for inspection of customer connections and overall program administration. Mr. Coe stated that the idea is to optimize in-house resources and minimize costs. Member Hockett encouraged involvement of staff representatives in addition to management representatives to facilitate good communications and buy in at all appropriate levels. Mr. Craig stated that we are trying to do that on a District-wide basis and incorporate that as part of the District culture. Mr. Coe stated that the capital costs relating to the District Recycled Water Program are budgeted in a separate Recycled Water Section of the Capital Improvement Budget. The Accounting Division has set up separate cost centers for each department so O&M material expenses can be tracked. O&M labor expenses are recorded using designated numbers on employee time cards. Mr. Coe stated that Accounting has been very helpful in setting up the necessary reporting and tracking systems. In summary, Mr. Coe stated that the Draft Principles of Agreement for the Lamorinda Recycled Water Project will be brought back to the Board for legal review and EBMUD input. It is hoped that the Principles of Agreement will be finalized before the end of the year. With regard to the Pleasant Hill (Zone 1) Recycled Water Project, the Recycled Water Ordinance will be scheduled for Board consideration after legal review. The customer connection bid for the Pleasant Hill Recycled Water Project is expected in fall 1997. At the request of the Board, Mr. Coe provided a quick review of the Recycled Water Industrial System, describing the location of existing facilities and potential customers. Mr. Coe stated that customer issues include: 04 24 97 117 . Requirement for removal of ammonia; . Possible need for removal of phosphorous; and . Potential problem with hardness in the boilers. The cost for this recycled water is higher than the price of Contra Costa Water District (CCWD) canal water, which is $450/AF to refineries. CCWD is not anxious to proceed with this project. CCCSD has submitted a proposal to CCWD. A response is expected next month. It is essential for CCWD to be a partner with CCCSD for this project to proceed. Mr. Robert A. Baker, Deputy Chief Engineer, stated that CCWD cannot afford a large recycled water project at this time. CCCSD is trying to sell them on a smaller project. The refineries do not really want this water and CCWD's cooperation is needed to make the refineries take the recycled water. Staff is working to develop a viable project. President Menesini thanked staff for the update. 4. REPORTS/ANNOUNCEMENTS None 5. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 12:06 p.m. ~o --ú,~~' Presi ent of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 04 24 97