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Home My WebLink About02-01-01 AGENDA BACKUP Publication of Industries in Significant Noncompliance (SN C) Overview of Requirement for SNC Publication => Federal regulations require that all Pretreatment Programs publish a list of Industrial Users in SNC for the previous calendar year. => Criteria for determining SNC status are defined in Federal regulations. lJ Discharge limit violations lJ Reporting deadlines lJ Compliance schedules Publication of Industries in Significant Noncompliance (SN C) Publication Notice Q Process / F onnat Q Pretreatment Program Annual Report Q Incentive for compliance Significant Noncompliance for Year 2000 " Discharge Quality Violations: Business Name / Address Nature of Violation Contra Costa Radiator 2849 Willow Pass Road Concord, CA 94520 Discharge limit violations: Copper, Lead, & Zinc Excel Linen Supply 125 Mason Circle, Unit G Concord, CA 94522 Discharge limit violation: Oil & Grease Reporting Violations: Business Name / Address Nature of Violation Benson's Radiator Service 1551 LaCassie Avenue Walnut Creek, CA 94596 Failure to submit required report within 30 days after the due date. Varian, Inc. 2700 Mitchell Drive Walnut Creek, CA 94598 Failure to submit required report within 30 days after the due date. PUBLIC NOTICE CENTRAL CONTRA COSTA SANITARY DISTRICT NOTICE OF SIGNIFICANT NONCOMPLIANCE FOR YEAR 2000 Notice is hereby given that pursuant to the federal regulations contained in 40 CFR 403.8.f{2)(vii), the Central Contra Costa Sanitary District (District) is required to publish the names of any and all Industrial Users (IU) of the District's public sewer system that were considered to be in significant noncompliance (SNC) with applicable pretreatment standards or other pretreatment requirements during the Year 2000 calendar year. Federal regulations establish objective criteria for the District to use to detennine if an Industrial User is in SNC. Discharge Quality Violations The following IUs were found to be discharging process wastewater in violation of the District's Local Discharge Limits or General Discharge Prohibitions at levels that were significant, or were documented to be operating with a pattern of non-compliance that was significant during the reporting period: Industrial User Nature of Violation FoUow-up Action Taken Contra Costa Radiator 2849 Willow Pass Road Concord, CA 94520 Limit violations for zinc, copper, and lead The District issued NaVs for the referenced violations. IU responded by modifying operational practices and providing employee training. Resampling by IU and by the District showed compliance with discharge limits. IU installed additional pretreatment equipment to enable operation as a zero-discharge facility. Excel Linen Supply 125 Mason Circle, Unit G Concord, CA 94522 Limit violation for oil and grease. The District issued an NaV for the referenced violation. The ill's resampling event showed the process waste water to be in compliance with the Local Limits. Reporting Violations The following IUs were found to have violated reporting requirements of the District's Source Control Program in a manner that met the federal definition of SNc. Industrial User Nature of Violation Follow-up Action Taken. Benson's Radiator Service 1551 LaCassie Avenue Walnut Creek, CA 94596 Failure to submit SDPC plan within 30 days of the due date. The District issued an NaV for the referenced violation. The required report has been submitted. Varian, Inc. 2700 Mitchell Drive Walnut Creek, CA 94598 Failure to submit required reports within 30 days of the due date. The District issued an Nav for the violation. The required documents have been submitted. .., .. Treatment Plant Energy Model 115 KV'A' esel 10 MW DI ~ Standby Power 3.2 MW 300 hr/yr max Electric Blower 2000hp 1.5MW 100 hr/yr Aeration Air Blower Average Treatment Plant Load 3.5 MW ----_.J Steam Turbine 2500 hp January 31, 2001 OPS Training 21 KV'B' 1.8 MW N ~'ítíUlnl1l Gas 45% Cogen 3.3 MW 1100 dth/day . ............. 50 dth/day 10% ~.. Auxiliary ~. 40 Bollers (2) ...dt~~aY Steam 90% 45% I Multiple Hearth I 50 Incinerators (2) dth/day with -- 400 Waste Heat Boilers I dth/ day 10% Ancillary Steam Loads Landfill Gas " y Energy Costs FY 2000-2001 Budget I Actual Electrical (PG & E Import) : $500,000 Natural Gas Landfill Gas Totals $575,000 $1,429,423 ~ FY 2001-2002 $660,000 $2,600,000 I $3,500,000 $440,797 $800,000 $2,370,220 $1,000,000 $3,975,000 1$5,160,000 Annual Energy Budget Current Fiscal Year -- $ %of energy budget Natural Gas $2,600,000 65% Landfi II Gas $800,000 20% Electrical $575,000 15% Total $3,975,000 100% Natural Gas Purchasing Strategies Past -- . 1-year fixed / index contracts . Last Year - Month to Month Index Natural Gas Purchasing Strategies Present -- 5 Month Winter (33.000 dTH) November 1 to March 31 30% @ $5.87/dTH 30% @ $5.52/dTH 15% @ $5.35/dTH 25% @ index Natural Gas Purchasing Strategies Future -- . Implement Team Approach Victoria Lamica, Jim Kelly, John Pearl, Doug Craig, Ann Farrell, Bill Brennan, Jim Belcher, Randy Schmidt, Kent Aim. . Explore Long Term I Short Term Buying Strateg ies. . Stay Flexible To Respond To Volatile Market Place. Estimated Future "Burner-Tip" NG Cost. -- 2001 2002 2003 2004 2005 2006-10 $ 8 . 45 $6. 70 $5. 70 $5.35 $5.25 $5.15 Summer Strip Apr - Oct Citygate $8.30 Current electric rates Customer 2000 Rate (Ø/kWh) Jan. 4, 2001 Ra~ Rate Increase (Ø/kWh) Residential 10.7 11.6 8% Small Business 11.7 12.7 9% Medium Business 9.6 10.6 10% Agriculture 8.3 9.3 12% Large Business 6.4 7.4 14% System Average 9.4 10.4 11% Pacific Gas and Electric Company 38 San Diego bill comparisons July 1999 July 2000 Residential $50* $100* Small Business $166 $334 School $4,441 $8,691 Supermarket $19,204 $41,868 Hospital $79,072 $173,048 *Figure islor May 2000 Source: San Diego Gas & Electric Co. (cited in 7//7/00 Los Angeles Times article) Pacific Gas and Electric Company 39 E I ectri ca I Strateg i es -- . Energy T earn Explore Alternate Suppliers For A Long Term Contract. . Revisit Energy Conservation / Efficiency Measures In Light Of Higher Costs. Mr. Reardon's Recommendations . Have an energy team with a champion. . Get the information you need from bill and rate schedule; Know your Rate Schedule. . Train your staff so that they know what to do. . Figure out where the energy goes; monitor power use real time. Mr. Reardon's Recommendations continued -- . Analyze "how to reduce" demand, and do a "what if" analyses; Run only the equipment you need. . Get help from outside experts on how to reduce HV AC, lighting, etc. . Create an incentive program; i.e., time off or gifts for people who have good, energy saving ideas. . Invest in electrical technology to ensure your equipment is cost effective. Conclusion.. What you can do to prepare . Understand the market and know your options . Reduce demand - the least expensive resource is the one you don't need . Become more energy-efficient -- energy efficiency may be worth more to you now than ever before . Determine your ability to curtail load voluntarily or via a curtailment program . Explore purchasing options through gas and/or electric energy service providers Pacific Gas and Electric Company 41 ---- Board Financial Planning and Policy Workshop February 1, 2001 . Purpose: To provide information and stimulate dialogue on the District's rate setting process . Outcome: For the Board to consider future rates and provide staff direction for future actions ---------------- - - u_---~---~_u_-----_._---------~-- .._~~-----_u_-- Last Year's Scenario 2000 O&M charge rate increase . Where did the expenses increase? . O&M expenses Last year ~ Utilities - $2,840 ~ Repairs - $2,239 ~ Outside Sers $1 ,966 This year $5,440 $ 2,891 $ 2,150 ~ Energy increase ~ Maintenance $2.6 million $ 0.8 million ~ Sewer Service Charge Increase - $24 .---- n_~- ---_u_- - .- ---- ------------------~----- --------- ---- --- - ----- Summary The Board should consider: . Raising Connections Fees as recommended. . Providing ratepayer notice for a Sewer Service Charge increase of up to $24 annually for three years. . Raising the Sewer Service Charge between $18 and $24 annually for the next three years (Stated goal is to bring District revenues to equal expenses within the next five years by continuing to control costs and enhance revenue.) ---------------------.------- ----- - - -----------~---------_._------ - n__- Next Steps Future actions for setting the Sewer Service Charge . Receive staff input on District financial position - January 25, 2001 Workshop . Request further information from staff - Consult with management team . Board presentation at future meeting on possible Sewer Service Charge rate scenarios - Last Board meeting in February . Authorize staff to mail public notice on rate hearing - Board meeting of March 15, 2001 . Board to set rates and approve budgets - Board Workshop on May 24, 2001; Board approval at meeting of June 21, 2001 - ----------- ------------ ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: February 1, 2001 No.: 6.a. ENGINEERING Type of Action: AUTHORIZE AGREEMENT AMENDMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT WITH THE FIRM OF TALAVERA AND RICHARDSON FOR MODIFICATION OF CAPITAL PROGRAM SOFTWARE Submitted By: John Mercurio, Management Analyst Initiating Dept./Div. : Engineering/Environmental Services REW:D AND RECOM~~þ BOARD ~;\ ~ . Sohm;.' C. SWO"" ~ ISSUE: Board authorization is required when a capital program consulting agreement amendment will increase the cost ceiling beyond the next $50,000 increment ($100,000 in this case). RECOMMENDATION: Authorize a $45,000 amendment to the current cost ceiling and a 21-month extension in the term of the Technical Consulting Services Agreement with Talavera and Richardson for updating and improving the Capital Program Software. FINANCIAL IMPACT: The agreement amendment would add $45,000 to the current cost ceiling. The proposed increase would be charged to District Project 8181, Capital Improvement Plan and Budget, through June 30, 2002. ALTERNATIVES/CONSIDERATIONS: The alternative to this authorization would be to 1) not update and refine the District Capital Project Software. This is not recommended because the proposed updates are anticipated to improve the ability of project managers to directly input schedule, expenditure and staffing information. A second alternative would be to use District in-house staff for this effort. District staff with this capability are committed on other projects. In addition, because Talavera and Richardson have worked extensively with the original software, they would be most efficient in modifying it. BACKGROUND: Contracting for software programming services will allow updates to the District's Capital Improvement Program software. These updates are necessary to meet changing District priorities as well as streamlining the budget process by increasing automation. In 1986, the District began its process of computerizing the documents used in the preparation of its Capital Plan and Program. This has been an ongoing effort. This past year we made the change of allowing direct input by project managers of existing and 1/25/01 H:\PPR\SMC\2001 AGRM.wPD Page 1 of 2 POSITION PAPER Board Meeting Date: February 1, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT WITH THE FIRM OF TALAVERA AND RICHARDSON FOR MODIFICATION OF CAPITAL PROGRAM SOFTWARE proposed project descriptions and expenditure estimates. This has been a manual operation in the past where the project managers gave written information to the keeper of the Capital Program data and that information was then input. By allowing direct input, one step in the process was eliminated. The purpose of the subject Technical Consulting Services Agreement is to meet existing and anticipated demands for programming services. Through this agreement, programming services will be provided for the current budget cycle, implementing changes that are helping staff analyze and prioritize the projects in the 10-year Capital Improvement Plan. This work will include tasks that have been identified but not funded as well as unidentified software upgrades that will assist staff in Capital Improvement Budget/Plan preparation in the next budget cycle. One initiative planned for this year is to develop more efficient means of linking project manager detailed schedule, expenditure and staffing projections with the Capital Program software. It is hoped this will allow more accurate projections of future capital spending. Talavera and Richardson was selected as the consultant for this contract based on the experience of its staff, familiarity with the District's procedures and standards, and its staff's ten years of experience in performing programming services for the Capital Improvement Program database. This amendment will bring the cost ceiling of their contract to $110,500. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an amendment to increase the cost ceiling to $110,500 and extend by 21 months the current agreement with Talavera and Richardson for software programming services. 1/25/01 H:\PPR\SMC\2001 AGRM.WPD Page 2 of 2 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: February 1, 2001 No.: 6.b. ENGINEERING Type of Action: Subject: ADOPT A RESOLUTION REVISING THE CONTRACTUAL ASSESSMENT DISTRICT POLICY Submitted By: Curtis W. Swanson, Division Manager Initiating Dept./Div. : Engineering/Environmental Services Division R~~ANO R£COMM~OARO ACTION, c. Sw,",," A. ,..,,11 -4 ISSUE: The Board of Directors must approve any revisions to the existing Cont actual Assessment District (CAD) Policy. RECOMMENDATION: Adopt a resolution revising the District Policy regarding the formation and administration of Contractual Assessment Districts. FINANCIAL IMPACTS: Adoption of the proposed resolution commits the District to authorize $1,000,000 per year for Contractual Assessment District Projects during fiscal years 2001-02 and 2002-03. AL TERNA TIVES/CONSIDERA TIONS: 1 . 2. Direct staff to revise the proposed resolution and policy. Withhold or delay approval of the proposed resolution and policy revisions. BACKGROUND: The District initiated a Contractual Assessment District Program in 1997 for the purpose of assisting homeowners with failing or inadequate septic tank systems to extend the public sewer system to serve their properties. The Board of Directors formally adopted a policy for the formation and administration of Contractual Assessment Districts by Resolution 99-010 on January 7, 1999. The policy included formation criteria, procedures, and definitions related to the CAD Program. On November 30, 2000, the Board held a workshop to evaluate the effectiveness and discuss the continuation of the CAD Program. The Board provided guidance to staff on improvements and changes to the CAD Program. Staff proposes to revise the existing CAD Policy as follows: 1. Add a statement about the purpose and intent of the CAD Program. 1/26/01 U:\PPR\SMC\CADPOLlCYCWS. WPD Page 1 of 1 3 POSITION PAPER Board Meeting Date: February 1, 2001 Subject: ADOPT A RESOLUTION REVISING THE CONTRACTUAL ASSESSMENT DISTRICT POLICY 2. Modify the CAD formation criteria to allow up to two dwellings on a participating CAD property. Modify the CAD assessment process to require that the same person or persons may take advantage of the ten-year assessment option for only one property at a time. Continue the overall budget of $1,000,000 per year for the CAD Program to fund individual CAD projects on a first come, first served basis for fiscal years 2001-02 and 2002-03. Specify a time limit of 18 months between initiation of a CAD and submittal of all information and documents necessary to prepare the Engineer's Report. Specify a process for property owners to appeal staff decisions regarding formation and administration of proposed CAD projects. Expand the scope of CAD project public hearings to include receiving public comments about the annexation of CAD properties to the District. 3. 4. 5. 6. 7. The proposed, revised CAD Policy is attached as Exhibit A. Staff will make a presentation describing the major revisions at the Board meeting. In addition to the major revisions, staff has made several format and editorial changes to make the policy clearer and easier to read. When adopted, the revised CAD Policy will apply to CAD's that have not been initiated yet or that have been initiated, but not approved. CAD's already approved will be covered by the previous CAD Policy and, more specifically, the CAD agreement between the District and CAD participants. RECOMMENDED BOARD ACTION: Adopt a resolution revising the District Policy regarding the formation and administration of Contractual Assessment Districts. 1/26/01 U :\PPR\SMC\CADPOLlCYCWS. WPD Page 2 of 1 3 RESOLUTION NO. RESOLUTION REVISING CONTRACTUAL ASSESSMENT DISTRICT POLICY WHEREAS, Central Contra Costa Sanitary District has, over the last several years, identified a prevalent sanitation issue occurring within the District's Service Area, that of the need to replace residential septic systems by connection to the District system; and WHEREAS, this sanitation issue is increasing in importance as a result of the failure of existing septic systems due to age and the increased densification of the Service Area; and WHEREAS, in order to replace failing septic systems with connections to the public sewers, extension of existing public sewer mains is frequently required; and WHEREAS, the cost and complexity of undertaking a sewer main extension may prevent a single homeowner from connecting to the public sewer system thus perpetuating an ongoing health and environmental problem; and WHEREAS, public policy, as well as legal and fiscal constraints, limit the ability of the District to build or extend local street sewers to serve individual or small groups of existing homes; and WHEREAS, the use of small assessment districts can provide the structure and financial assistance required to encourage neighbors to jointly undertake projects to provide sewer service to their properties; and Page 3 of 1 3 WHEREAS, since 1997 on a demonstration basis and since 1999 on a program basis, the District has made use of the provisions of the Streets and Highways Code Section 5898, et seQ. in order to create small Contractual Assessment Districts in order to provide for assessment financing of main extensions for failing septic systems; and WHEREAS, the Board of Directors established a policy for the formation of Contractual Assessment Districts by adopting Resolution No. 99-010 on January 7, 1999; and WHEREAS, based on experience with individual Contractual Assessment District Projects during the past two years, the Board of Directors believes that revisions to the Contractual Assessment District Policy are appropriate. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District adopts the revised Contractual Assessment District Policy Statement, attached as Exhibit A and incorporated herein by reference. The Board of Directors of the Central Contra Costa Sanitary District further finds that this policy shall remain in effect until such further order of the Board; however, the adoption of this policy does not create any vested right or entitlement to any parcel owners within the District's sphere of influence concerning eligibility for this program, nor shall the District be precluded from modifying or terminating this program at any time it deems appropriate. Page 4 of 13 PASSED AND ADOPTED this 1 st day of February, 2001 by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Joyce E. Murphy Secretary, Central Contra Costa Sanitary District, County of Contra Costa State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel Page 5 of 13 EXHIBIT A CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT (REVISED FEBRUARY 1, 2001) Introduction This policy statement for the Contractual Assessment District (CAD) Program establishes the criteria for formation of CAD projects, the process for the CAD program and methodology for allocating costs and assessments among CAD participants. Contractual Assessment Districts (CADs) are small assessment districts formed pursuant to Streets and Highways Code Section 5898, et seq. to extend sewer facilities to residential areas currently served by septic tank and leachfield systems. The District Board of Directors first approved a CAD Policy Statement in January 1999. Also, at that time, the Board authorized $1,000,000 per fiscal year for three fiscal years beginning July 1998 and ending June 2001. The Board desired to evaluate the effectiveness of the CAD Program toward the end of the third fiscal year. A Board workshop regarding the CAD Program was held November 30, 2000. This revised policy statement is an outcome of that evaluation. CAD Program Purpose The purpose of the CAD Program is to provide financial assistance to small groups of homeowners with inadequate septic tank systems so that they may extend the public sewer system to serve their properties. The intent of the CAD Program is to assist single family homeowners with failing or inadequate septic tanks who might not otherwise have the means to finance the cost of extending the public sewer. The CAD Program is intended for residential properties, primarily owner-occupied, and not commercial properties. CAD Program Funding The District will continue with the policy of a $1,000,000 per year budgetary ceiling for CADs during the fiscal years 2001-02 and 2002-03. This ceiling amount is to be calculated based on the total allocation to CAD projects receiving Board approval during each fiscal year. The Board of Directors, in their discretion, may modify this program, including increasing or decreasing the budgetary ceiling, at anytime. Nothing in this policy is intended to bind the District to continue with the program for any predetermined time period, nor does it create any right or entitlement in favor of Page 6 of 13 potential program participants. In the absence of any intervening action of the Board of Directors, it will review the effectiveness of the CAD Program at or near the end of Fiscal Year 2002-03. Definitions . A Contractual Assessment District (CAD) is a legal entity established pursuant to Streets and Highways Code Chapter 5898 for the purpose of financing the construction of sewers in residential areas currently being served by septic tanks. . Parcel or Property denotes in this Policy a piece of residential real estate, including land and anything permanently affixed to the land including buildings. The terms parcel and property have the same meaning herein and shall refer to the divisions of property as indicated on County Assessor's Parcel maps. . Participants are owners of properties directly tributary to proposed facilities who voluntarily agree to enter into a CAD contract. . Non-participants are owners of properties directly tributary to the proposed facilities who do not to enter into a CAD contract. Non-participants will not be assessed for their share of the sewer improvement costs until the time of connection. . Participant Parcels are those properties to be served by the proposed facilities owned by Participants. . Non-participants Parcels are properties owned by non-participants, which could directly connect to proposed facilities and are not initially connected to the sewer improvements. . CAD Non-participant Reimbursement Fees are fees collected from owners of Non-participant Parcels at the time of connection to the sewer to reimburse current Participant Parcel owners for the Non-participant Parcel's share of the cost of sewer improvements installed under the CAD. Criteria for Formation In order to be eligible for participation in the District's CAD assessment financing program, the proposed sewer extension project must meet the CAD formation criteria. District staff will make a threshold eligibility determination and will provide proponents with a written determination of eligibility. The criteria are as follows: Page 7 of 1 3 . A minimum of five properties must be directly tributary to the proposed CAD facilities. . A minimum of 60 percent of the properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems. . A Participant Parcel may not have more than two (2) dwellings to participate in a CAD. Notwithstanding the above-listed criteria, the District's decision as to whether to form a CAD will be determined on a case-by-case basis and is at the sole discretion of the Board of Directors. The Board may consider technical, economic, staffing, budgetary, environmental and other factors in its consideration of whether to form a CAD. CAD Formation Process There are several staff level actions and three Board approval steps in the CAD process. The District Board of Directors will consider approval of individual CAD projects which staff has determined meet the formation criteria. The following Board actions are required. . Initiation of a CAD . Approval of the Engineer's Report and assessments; improvements; and approval of the CAD election. . Approval and levying of final assessments. ordering of the 1. Initial Actions . Small groups of property owners may be eligible for a CAD if (1) they occupy houses served by septic tanks, and (2) they seek a sewer main extension to provide for connection to the District system. District staff will work with the owners to explain the CAD process. If a sufficient number of property owners and the District remain interested in proceeding with a CAD and the criteria for CAD formation appears to be met, the District will consider initiation of a CAD. Property owners will be requested to submit letters indicating their interest in formation of a CAD. Property owners will also be requested to submit annexation petitions if their properties are not already part of the District. Staff will issue a letter setting forth its initial determination of eligibility for the CAD program. . If District staff determines that a proposed CAD does not meet the formation criteria, staff will notify the property owners in the proposed CAD of the staff decision in writing. Property owners may appeal this staff decision to the District Board of Directors in accordance with Chapter 1.16 of the Page 8 of 1 3 District Code except as modified by this policy. This policy allows property owners 30 days to request an appeal of a staff decision. The Secretary of the District will schedule the matter for a hearing before the Board of Directors and provide written notice of the time and place of that hearing to the affected property owners, 2. Creation of Assessment District . Participants are required to retain an engineer to design and solicit bids for the private work (the sewer facilities). . An Engineer's Report estimating project costs and assessment levels will be prepared by the District in accordance with state law. Residents will have 18 months from when the District initiates formation of a CAD to submit sewer plans, construction bids and other information necessary for the District to prepare an Engineer's Report. . The District will distribute Notices of Proposed Assessment and conduct and election in accordance with state law by which property owners may indicate their approval of or opposition to the proposed assessment. . The Board of Directors will conduct a public hearing to announce the outcome of the election and receive public comment about the proposed assessment. In addition, the public hearing will be to receive comments on annexation of properties in a CAD if a public hearing is required as part of the annexation process. . Following the public hearing, the Board of Directors will determine the election results and consider approval of the Engineer's Report, preliminary assessments, and the CAD improvements. . If the proponent property owners do not provide all necessary information, including approved plans and construction bids, within 18 months of District's initiation of CAD proceedings, the CAD process will be terminated. 3. Assessment Contract and Construction . Following approval by the Board of Directors of the Engineer's Report and CAD improvements, the Participants must enter into a written contract with the District which describes the responsibilities of the parties, the work, and the provisions for payments. Page 9 of 1 3 . The District will undertake the procedural requirements to form the CAD, and will review the plans for compliance with District standards, finance the work, and establish the assessments. . Participants are required to hire a contractor and to supervise the construction of the private works CAD facilities. The District will have no contractual relationship with the contractor and will not provide construction management or site supervision; however, the District will inspect the project consistent with prevailing District inspection procedures. . The District will accept the work if the work is done in accordance with District standards. . Participants shall be required to provide all project cost records and related information. District staff will review project costs, evaluate eligible project costs, and determine the proposed final assessments. The Board of Directors will then consider approval and levying of the final assessments. Payments and Assessments . Unless limited by other provisions of this policy, each Participant shall have the option to pay for his share of CAD expenses after the work is completed by either 1) lump sum cash payment or 2) by contractually subjecting his property to an annual assessment, including interest, over the term of the CAD. Regardless of the payment option chosen, Participants pay all costs of the sewer main extension and other appurtenant facilities required to bring service to the Participants' Parcels. The existence, or non-existence of potential Non- participant connectors shall not affect the obligation of the Participants to pay for all costs associated with the project. . The term of the Participant's assessment (payback period) shall be ten years. The interest rate shall be fixed when the contract between the Participants and the District is signed for the District by the General Manager. The annual interest rate for assessments shall be 1 percent above the then current average interest rate on CCCSD temporary investments. . Participants are limited to use of the ten-year annual assessment payment option for a single parcel at any given time. If a person(s) owns two or more parcels in the same CAD or different CADs, that person(s) may be a Participant for more than one parcel, but will be eligible for the annual assessment option for a single parcel. The shares of the CAD expenses for the other parcels must be paid by the lump sum payment option. Page 1 0 of 1 3 . In the event a Participant is not eligible for the CAD assessment financing option, the Participant shall make a full lump sum payment prior to initiation of contract based on the preliminary assessment figures set forth in the Engineer's Report. Return of any excess payment or additional required payment shall be made at the time of fixing of final assessments. . The assessments shall be equal for each Participant's Parcel unless otherwise provided for in the contract and documents creating the CAD. If an existing Participant's Parcel can be legally subdivided, there are two dwellings currently existing on a single parcel, or other cost of service related factors justifying differing assessments are present, said Parcel may be assigned more than one assessment. . The costs of the work associated with sanitary sewer mains, manholes, rodding inlets and private sewer laterals within public streets or right of way may be included as eligible costs of the CAD. Eligible CAD costs may also include costs for other appurtenances within public streets or rights of way necessary to bring the sewer service to the Participants. The cost of septic tank abandonment, installation of the private sewer laterals (not within a public street or public right of way), and District fees and charges customarily due upon connection to the public sewer shall be excluded from CAD financing. For purposes of this paragraph, "rights of way" shall include public or private roads providing legal ingress and egress to multiple parcels. . The CAD assessments will be imposed on each Participant's Parcel and recorded as a lien against the Parcel. The assessment will include the principal and interest and will be collected on the property tax bill as an assessment along with taxes and other assessments and charges on the subject parcel. CAD Non-carticicant Reimbursement Fees . CAD Non-participant Reimbursement Fees will be established by the District Board of Directors in accordance with District practice and the CAD contract if District staff determines that there are Non-participant Parcels which could connect to the CAD facility. The District will collect CAD Non-participant Reimbursement Fees for a period of 20 years from the date of the CAD formation. The obligation of a Non-participant Parcel owner to pay a reimbursement fee upon connection to a CAD sewer will expire after the 20- year period. . CAD Non-Participant Reimbursement Fees will be established by the Board after a public hearing and after final assessments have been established. Page 11 of 1 3 . For purposes of calculating the amount of a CAD Non-participant Reimbursement Fee to the applied to a subsequently connecting parcel, a Non- participant Parcel will be treated as a Participant Parcel for the purposes of calculation and distribution of subsequently collected Reimbursement Fees. . CAD Non-participant Reimbursement Fees will be calculated by dividing the total CAD cost by the current number of Participants. The number of Participants for this purpose shall include the total of the original and subsequent connectors, and the current Non-participant Reimbursement Fee payor. The following example illustrates this calculation process. Assume: Total assessments to be paid = $80,000; there are 4 original Participants, and there are 4 Non-participants. Each of the 4 original Participants assumes a $20,000 assessment. REIMBURSEMENT FEE CALCULATION Non- Credit to each Net Cost to Participant' Fee prior Participant Participants Connection First $80,000 = $16,000 $16,000 = $4,000 $20,000 - 4.000 5 4 $16,000 Second $80,000 = $13,333 $13,333 = $2,667 $16,000 - 2.667 6 5 $13,333 Third $80,000 = $11,429 $11,429 = $1,904 $13,333 - 1.904 7 6 $11,429 Fourth $80,000 = $10,000 $10.000 = $1,429 $11,429 - 1,429 8 7 $10,000 1After a Non-participant Parcel owner pays their reimbursement fee. the Non-participant Parcel owner becomes a Participant for the purpose of further reimbursement fee calculations. . As non-participating owners connect their homes to the sewer extension, CCCSD staff will collect a CAD Non-participant Reimbursement Fee from each newly connecting Non-participant Parcel owner. Each newly received CAD Non- participant Reimbursement Fee will be divided uniformly among the current owners of Participant Parcels. The owner(s) of the Participant Parcel at the time of the distribution shall receive any excess amount of a reimbursement share over that needed to extinguish any remaining CAD assessment, such amount to Page 1 2 of 13 be limited to the total amount of CAD assessments or lump sum payment paid by the then current parcel owner(s), reduced by other excess reimbursement amounts previously paid to this same parcel owner(s). The District will forward a notification of available funds and a verification form to the current Participant Parcel owner(s) at the address reflected in the then current Assessor's records. Upon receipt of a properly completed verification form by the District, the District will forward a check to the then current Participant Parcel owner in the amount of the Participant Parcel owner's share as determined herein. . The District shall have no affirmative responsibility to locate the eligible Participant Parcel owner(s), other than to mail notice to the Assessor's address for the parcel owner; nor shall the District be required to attempt to contact an eligible owner's estate, or heirs, nor to locate or protect other potential interest holders. Any proceeds from collections of CAD Non-participant Reimbursement Fees which are held by the District for over three years due to inaction on the part of an eligible owner, or excess proceeds from CAD Non-participant Reimbursement Fees accumulated pursuant to the procedures set forth herein, will become the property of the District. Page 13 of 13 CONTRACTUAL ASSESSMENT DISTRICT PROGRAM ~ fQUCY CJ:IANGfS U:\Admin\Swanson\Overheads\Board Feb2.wpd ~CAD~ INTRODUCTION PURPOSE FUNDING DEFINITIONS FORMATION CRITERIA FORMATION PROCESS 1. 2. 3. INITIAL ACTIONS CREATION CONTRACT & CONSTRUCTION PAYMENTS & ASSESSMENTS NON-PARTICIPANT REIMBURSEMENT FEES U:\Admin\Swanson\Overheads\Board Feb2.wpd CONTRACTUAL ASSESSMENT D ISTRI CTS ~ C N IDERATI 1. KEEP SIMPLE & FLEXIBLE 2. BENEFICIAL TO HAVE MORE PROPERTIES 3. LIMIT PARTICIPATION OF OWNERS OF MUL TIPLE PROPERTIES 4. NEED TO COMPLY WITH ASSESSMENT D ISTRI CT LAWS U:\Admin\Swanson\Overheads\Board Feb2.wpd CONTRACTUAL ASSESSMENT DISTRICTS F.OLICY REVISIONS . PURPOSE & INTENT OF CADS . UP TO 2 DWELLINGS I PROPERTY . 10-YEAR ASSESSMENTS FOR 1 PROPERTY . IS-MONTH TIME LIMIT FROM CAD INITIATION . APPEAL PROCESS . ANNEXA TI 0 N HEARING . $1 MILLION I YEAR THROUGH 2002 - 2003 U:\Admin\Swanson\Overheads\Board Feb2.wpd CAD EORMAIIQN CRIIERIA . MINIMUM OF 5 PROPERTIES . MINIMUM OF 60% OF PROPERTIES MUST HAVE HOME WITH SEPTIC TANK *** PROPERTY MA Y NOT HA VE MORE THAN 2 DWELLINGS . BOARD DECIDES FORMATION ON A CASE- BY-CASE BASIS: TECHNI CAL ECONOMIC *** STAFFING & BUDGETRY ENVIRONMENTAL OTHER U:\Admin\Swanson\Overheads\Board Feb2.wpd CAD~& MENTS . STILL HAVE 2 PAYMENT OPTIONS: 1. ANNUAL ASSESSMENTS OVER 10 YEARS 2. LUMP SUM *** PARTICIPANTS LIMITED TO USINGIO-YEAR ASSESSMENT FORA,SINGLE PARCEL AT ANY GIVEN"TIME U:\Admin\Swanson\Overheads\Board Feb2,wpd APPEAL :fROCESS . STAFF MAKES DETERMINATION OF CAD ELI GIBILITY . OWNERS MAY APPEAL TO BOARD OF DIRECTORS . FOLLOW APPEAL DISTRICT CODE PROCEDURE IN . 30-DA Y TIME LIMIT . BOARD CONDUCTS HEARING & DECIDES WHETHER OR NOT, TO UPHOLD OR MODIFY STAFF DECISION U:\Admin\Swanson\Overheads\Board Feb2.wpd ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: February 1, 2001 No.: 7.a. TREATMENT PLANT Type of Action: DIRECT STAFF Subject: REVIEW LANDFILL GAS AGREEMENT AND USE STATUS Submitted By: James L Belcher, Senior Engineer Initiating Dept./Div. : Plant Operations Department/Maintenance REVIEWED AND RECOMMENDED FOR BOARD ACTION: (J. ;aa / ;~ ~ ... :!J- ISSUE: Board of Directors to provide direction to staff regarding landfill gas use. RECOMMENDATION: Consider alternatives and direct staff regarding continued landfill gas use. FINANCIAL IMPACTS: To be presented under a separate cover. AL TERNATIVES/CONSIDERATIONS: Alternatives include, but are not limited to, discontinuing use of landfill gas, continuing under the existing evergreen extensions, or continuing negotiations; and evaluating and pursuing legal remedies. BACKGROUND: The District has used landfill gas in its furnaces and auxiliary steam boilers since 1983. At that time, the District received a 25 percent discount off natural gas costs. The contract has been revised four times, primarily to adjust the discount as natural gas prices declined. The current landfill gas contract with Acme Landfill expired on July 1, 1999. We are currently operating under the contractual 90-day evergreen extensions. At the Board meeting on September 7, 2000, the Board authorized the General Manager to execute a new five-year landfill gas contract with an effective date of August 1, 2000. The landfill gas discount was set at 30 percent (from burner tip natural gas costs) with a floor of $2.50/decatherm. For natural gas costs above $5.00 per decatherm, the 30 percent discount would increase to 50 percent of the incremental increase above $5.00. As of September 7, District staff understood the contractual arrangements were to be as follows: Acme Landfill would lease the gas rights, collection system, and compressor package to NEO/ACME, a wholly owned subsidiary of NEO Corporation. NEO/ACME is a 50-percent controlling partner of MM Martinez Energy LLC. NEO is a wholly owned subsidiary of Northern States Power, a utility in Minnesota. NEO needed to finalize these 1/26/01 S:\Correspondence\POSPAPR\2001 \Landfill Gas Status.JLB.wpd Page 1 of 2 POSITION PAPER Board Meeting Date: February 1, 2001 Subject: REVIEW LANDFILL GAS AGREEMENT AND USE STATUS contractual arrangements before they could sign the contract with the District. The District had repeated assurances from NEO that NEO was completing the contractual arrangements necessary to sign the agreement that the Board approved on September 7. However, on January 23, 2001, in a conference telephone conversation, attorneys representing NEO informed District staff that the existing landfill gas agreement had been assigned to NEO and that NEO probably would not sign the agreement that was approved by the Board on September 7, 2000. The NEO representatives asked if the District would consider a discount that would increase NEO's income. NEO was informed by District staff that this was a Board issue, but that from staff's perspective, NEO had not dealt with the District in good faith, As a footnote, the District has not been billed for its landfill gas use since August 1, 2000. Staff will provide data under separate cover on the alternatives and other information the Board may consider when directing staff. RECOMMENDED BOARD ACTION: Consider alternatives and direct staff on continued landfill gas use. 1/26/01 S:\Correspondence\POSPAPR\2001 \Landfill Gas Status.JLB.wpd Page 2 of 2