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HomeMy WebLinkAboutAGENDA BACKUP 07-03-97 ~. Central Contra Costa Sanitary District BOARD OF DIRECTORS iiiiii!.i$:iMl:':'.'i::iii:ii.i.!::j(::~:I!:~;;;::i:;:i:i.i: BJOARID M3EETlN,GgOgF 7 :::::m;Jilia'~~~lr "'1~.::::::mMmiwFS.::::::::::::::: u y , :::::::::::::::::::::::::::::::::::::::::::::::::::;:;:;:::;::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::. Page 1 of 1 NO. 4. CONSENT CALENDAR b. DATE June 27, 1997 TYPE OF ACTION APPROVE AGREEMENT SUBJECT APPROVE A COMMON USE AGREEMENT WITH CITY OF WALNUT CREEK FOR JOINT USE OF EASEMENTS IN FORMER SOUTHERN PACIFIC RIGHT OF WAY SUBMITTED BY Andrew J. Antkowiak, Associate Engineer INITIATING DEPTIDIV Engineering Dept./lnfrastructure Div. ISSUE: Board approval is required for the acceptance of Common Use Agreements for joint use of District Easements. BACKGROUND: The City of Walnut Creek is proposing to build a pedestrian bridge over Ygnacio Valley Road in Walnut Creek, in the former Southern Pacific Railroad Right-of-Way now owned by Contra Costa County. Portions of the proposed bridge will encroach into the District's easement obtained from the Contra Costa County in 1985. The easement allows other users facilities in District's easements. The District requires that subsequent users enter into a Common Use Agreement with the District. The Common Use Agreement contains certain conditions and restrictions designed to protect the property rights acquired by the District. These conditions and restrictions include those outlined in the original Purchase Agreements with Contra Costa County and in subsequent Grants of Easement from Contra Costa County. On April 1, 1997, Contra Costa County granted the City of Walnut Creek a License for Construction and Operation of the proposed pedestrian bridge. The areas of the bridge encroaching into existing District's easements are subject to conditions contained in the District's Common Use Agreement. The City has cooperated with District staff and has agreed to all of the District's conditions for common use. The conditions include all requirements and restrictions specified in the original Purchase Agreements and subsequent Grants of Easement. In addition, the City is required to design and construct the bridge with pier depths well below the existing sewers to allow for inspection, maintenance and repairs/replacement of existing sewer lines without adversely affecting the proposed bridge. The City is also required to cooperate with the District to resolve any problems related to damage and/or closure of the bridge for any District activity related to the common use easement area. The City Council is scheduled to consider approval of the Common Use Agreement on July " '997. Staff has concluded that this project (the proposed Common Use Agreement) is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section '8.6, since it involves a minor alteration in land-use limitations. Board of Directors' approval of this Consent to Common Use will constitute an independent finding that this project is exempt from CEQA. RECOMMENDATION: Approve a Common Use Agreement with City of Walnut Creek contingent on the City's prior approval of the Agreement. Authorize the President of the District Board of Directors and the Secretary of the District to execute the Agreement and authorize recording of the document. AJA TJP JSM REVEWED AND RECOMMENDED FOR BOARD ACTION @ @ /111 INITIATING DEPARTMENTIDIVISlON ID-G L\C:\INFRA \PP\ANDREW. WPD ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS :::::niNts:&I:':'.W:i::::::n::jdn:e:i5f'::m::::: BOARD MEETjG r 3 1 997 :::::m:~MnBI:::I::::::::.~rl::::::m.m;::I!!I:::::::::::::: u y , Page 1 of 5 NO. 6. BIDS AND AWARDS a. DATE June 27, 1997 TYPE OF ACTION AUTHORIZE AWARD - AUTHORIZE AGREEMENTS SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MOUNTAIN CASCADE, INC. AND AUTHORIZE CONSULTING AGREEMENTS WITH DCM JOYAL ENGINEERING AND MONTGOMERY WATSON FOR THE SOUTH ORINDA SEWER IMPROVEMENTS, PHASE 1, PROJECT, D.P. 4928 SUBMITTED BY Tad J. Pilecki, Senior Engineer INITIATING DEPTIDIV Engineering Dept./lnfrastructure Div. ISSUE: On June 24, 1997, sealed bids for the construction of District Project No. 4928, South Orinda Sewer Improvements, Phase 1 were opened. The Board of Directors must authorize award of the contract or reject all bids within 50 days of the opening of bids. Authorization of the Board is required for the General Manager-Chief Engineer to execute professional services agreements in amounts greater than $50,000. BACKGROUND: The South Orinda Sewer Improvements Project includes installation of 8,250 feet of 36- inch sewer by microtunneling along Moraga Way. An additional 11,500 feet of 8- to 12-inch sewer will be replaced utilizing pipe bursting and open cut construction methods. The project is necessary in order to eliminate potential dry and wet weather overflows in this sensitive East Bay Municipal Utility District watershed area. Plans and specifications were prepared by District staff. The project was advertised for bid on May 27 and June 2, 1997. The Engineer's prebid estimate for construction was $8,635,000. Three bids ranging from $10,574,247 to $11,692,893 were received and publicly opened on June 24, 1997. A summary of bids is presented in Attachment 1. The Engineering Department conducted a technical and commercial evaluation of bids and determined that the lowest responsible bidder is Mountain Cascade, Inc., for the amount of $10,574,247. Staff has evaluated the variance between the engineer's estimate and the low bid. The cost of the microtunneling pipe doubled over the engineer's estimate, adding $650,000 to the project cost. The microtunneling subcontractor cost for installation of the pipe increased by 20 percent adding another $650,000. In addition, the contractors'/subcontractors' costs were increased due to the difficult traffic conditions, ingress and egress from the microtunneling sites, and to provide a contingency allowance in case the microtunneling head got stuck. Four hundred thousand dollars of the increase can be attributed to items added to the project after the engineer's estimate was prepared, including 400 feet of microtunneling that was moved from Phase 2 to Phase 1. REVEWED AND RECOMMENDED FOR BOARD ACTION RAB ~ ID-GL\C:\INFRA\PP\4928AWAD.T jp 9116/96 ill'I"I""'I'I!!II'lllilllllllll'I'I'IIBllllillllll:11I1111111 ~A~~e 27, 1997 l Page 2 of 5 SUBJ ECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MOUNTAIN CASCADE, INC. AND AUTHORIZE CONSULTING AGREEMENTS WITH DCM JOYAL ENGINEERING AND MONTGOMERY WATSON FOR THE SOUTH ORINDA SEWER IMPROVEMENTS, PHASE 1, PROJECT, D.P. 4928 The funds required to complete this project, as shown in Attachment 2, are $12,666,000. The total project cost for Phase 1 is anticipated to be $14,566,000. Construction of the South Orinda Sewer Improvements, Phase 1, Project is included in the fiscal year 1997-98 Capital Improvement Budget (CIB) on pages CS-46 through CS-48. Staff has conducted a cash flow analysis of the Sewer Construction Fund and concluded that adequate funds are available for this project. District staff plans on administering the construction contract and reviewing shop drawings. DCM Joyal Engineering (DCM) will provide assistance with shop drawing review for microtunneling and office engineering services. DCM prepared the geotechnical report and provided input on the microtunneling design. Because of satisfactory performance and knowledge of the project, DCM is recommended to provide engineering services for the microtunneling portion of this project. A Professional Engineering Services Agreement in the amount of $67,000 has been negotiated with DCM. Resident Engineering, office engineering services, and construction inspection for the project will be provided by Montgomery Watson (MW). MW has provided resident engineering and construction inspection for previous District projects, including projects involving microtunneling. Because of previous satisfactory performance and knowledge of microtunneling, MW was selected to provide resident engineering, office engineering services, and construction inspection for the South Orinda Phase 1 Project. A Professional Engineering Services Agreement in the amount of $400,000 has been negotiated with MW. On November 7, 1996, the District Board of Directors determined that this project was exempt from the California Environmental Quality Act (CECA). A Notice of Exemption was filed with the Contra Costa County Clerk on November 8, 1996. RECOMMENDATION: Authorize award of contract for construction of the South Orinda Sewer Improvements Phase 1 Project, District Project No. 4928, in the amount of $10,574,247 to Mountain Cascade, Inc., as the lowest responsible bidder. Authorize the General Manager-Chief Engineer to execute Professional Service Agreements with DCM Joyal Engineering ($67,000) and Montgomery Watson ($400,000). ID-GL\C:\INFRA\PP\4928A W AD.T JP 9116/96 Attachment 1 Central Contra Costa Sanitary District SUMMARY OF BIDS PROJECT NO. 4928 - South Orinda Sewer Imorovements. Phase 1 DATE June 24. 1997 LOCATION: Orinda. California ENGR. EST. $8.635.405 1 Mountain Cascade, Inc. P.O. Box 5050 Livermore, CA 94551 $10,574,247 2 Ranger Pipeline Inc.lD' Arcy & Harty Construction A Joint Venture P.O. Box 24109 San Francisco, CA 94124 $11,209,421 3 McGuire and Hester $11,692,893 9009 Railroad Avenue Oakland, CA 94603 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 BIDS OPENED BY Isl Jovce E. Murohv DATE June 24. 1997 SHEET NO. .l OF ...1 C:\INFRA\PP\4928AWAD,T JP A IT ACHMENT 2 SOUTH ORINDA SEWER IMPROVEMENTS PHASE 1 DISTRICT PROJECT NO 4928 POST BID/PRECONSTRUCTION ESTIMATE ITEM DESCRIPTION TOTAL PERCENT OF CONSTRUCTION CONTRACT COSTS 1 2 Contractor's Bid $10,574,247 845,753 Contingency at 8% Subtotal 11,420,000 100 3 Construction Management Project Management Assistant Resident Engineer Design Support 76,000 160,000 67,000 Subtotal 303,000 2.7 4 Consultant Contracts Contract Administration/Inspection (Montgomery Watson) Subtotal 400,000 67,000 30,000 30,000 30,000 5,000 5,000 15,000 3,000 585,000 5.1 Geotechnical for Microtunneling (DCM/Joyal) Geotechnical for Non-microtunneling (Rogers Pacific) Preconstruction Damage Assessment Arborist (D. Abeyta) Pavement Consultant (Chec) Traffic Consultant (Abrams) Material Testing Consultant Noise Consultant C:\INFRA\PP\4928AWAD,T JP ITEM DESCRIPTION TOTAL PERCENT OF CONSTRUCTION CONTRACT COSTS 5 Miscellaneous Legal Disputes Review Board CSOD Field Office Support As-builts Survey Community Liaison City of Orinda Permit, Inspection Outside Inspection, fee etc. Temporary Clerical Assistance' Staging Area Rental 25,000 30,000 10,000 10,000 15,000 110,000 54,000 100,000 10,000 16,000 28,000 Subtotal 408,000 3.6 6 Prebid Expenditure Subtotal 1,280,000 11.2 570,000 5.0 1,850,000 16.2 14,566,000 127.5 1,900,000 12,666,000 Design Right of Way Acquisition 7 Total Project Cost Estimate 8 Funds Authorized to Date 9 Total Allocation of Funds to Complete Phase 1 Project 'The level of secretarial activities associated with construction management and public relations on this large project creates the need for one part-time secretarial position to supplement the current clerical staff for a period of 14 months. C:\INFRA\PP\4928AWAD.T JP ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS 1:IIIIIIIIIIIIII~ll.II:llillllil~ BO~MEJ~~ 3, 1997 Page 1 of 2 NO. 6. B IDS AND AWARDS b. June 26, 1997 TYPE OF ACTION REJECT BID DATE Sl&IECT REJECT BID FOR SECURITY ACCESS AND VIDEO SYSTEMS, BID REQUEST 011277CK, AND AUTHORIZE STAFF TO PROCEED WITH THE COMPLETION OF THE PROJECT (DP8172) WITHOUT FURTHER BIDDING SUBMITTED BY INITIATING DEPTIDIV Ken F. Laverty, Purchasing & Materials Manager Administrative/Purchasing ISSUE: On May 21, 1997, a sealed bid was received and opened for furnishing a Security Access and Video System, District Project 8172. The Board of Directors must authorize award of contract or reject the bid within 60 days. BACKGROUND: The project purpose is to install an electronic security access system and video system in both HOB and POD man entrances and n selected security risk areas, such as Accounting/record vaults. This will reduce an unauthorized entry, provide the District protection from loss of equipment and important records, and offer personal protection for the employees. The consultant's estimate for the work was $81,000. The Bid Request was publicly advertised and issued to ten potential bidders. There was one proposal received and publicly opened on May 21, 1997, as follows: CardKey Systems, Inc. at $217,904. Staff and consuttant contacted the non-bidders and their reasons for not bidding included: that they could not take on extra jobs since they were committed to other projects; did not have the appropriate contractor license; the subcontracti1g portion of the work was too large; did not wish to submit a bid bond; and were unfamiliar with the requirements of public bidding. A technical evaluation revealed that CardKey took a major material variance to the warranty provisions by substituting their own warranty, did not quote on the equipment and installation as specified, and the bid pricing was substantially high indicating that they did not understand the actual scope of work. CardKey indicated that there was confussion on their part concerning the actual quantity of electrical work required, which caused their bid estimate to double. Staff recommends that CardKey Systems' bid be declared non- responsive and therefore, considered as if there were no bids received. Staff has nfonned CardKey Systems that its bid is considered by staff to be non-responsive to the Bid Request because of material variances in the general conditions and technical specifications. Furthermore, Card Key Systems has been infonned that they have a right to a variance hearing at the Board meeting of July 3, 1997 to show cause as to why the Board should not declare CardKey's bid non-responsive. CardKey Systems has indicated that they will not challenge the staff's recommendation. ~ AM) fE, BOAR) ACTION INITIATING DEPARTMENTIDtVlSlON ~/// KFL H:\FORMS\LOCKS2R.WPD 9/16/96 DATE June 26, 1 997 Page 2 of 2 SUBJECT REJECT BID FOR SECURITY ACCESS AND VIDEO SYSTEMS, BID REQUEST 011277CK, AND AUTHORIZE STAFF TO PROCEED WITH THE COMPLETION OF THE PROJECT (DP8172) WITHOUT FURTHER BIDDING The California Public Contract Code, Section 20805, allows the District to proceed with the project without further bidding when no bids are received. Staff is requesting that the Board authorize staff to proceed with completion of the project by negotiating directly with one or more suppliers and contractors. Staff believes it is in the best interest of the District to negotiate a contract(s) for completion of the project, because readvertising would not produce any advantage and would be unavailing as affecting the final result. Staff has begun discussions with CardKey in an effort to define the scope of work and obtain pricing for the work that is closer to the consultant's estinate of $81,000. Staff will report back to the Board on the project's status and to obtain authorization to award one or more negotiated contracts for the completion of the project. The security access and video system project is included in the fiscal 1996-1997 Capital Improvement Budget on pages GI 22 and 23. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEOA) under District CEOA Guidelines, Section 18.2, since it involves only minor alterations to an existing facility with negligible or no expansion of capacity. Board of Directors' approval of this project will constitute an independent finding that the project is exempt from CEOA. RECOMMENDAllON: Declare CardKey System, Inco's bid non-responsive and authorize staff to negotiate one or more contracts for the completion of the project. ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS i'i..IIIIIIII!~i'~IIIII'i':!:"..I:1 BOARD MEETIJ~~ 3, 1997 Page 1 of 7 NO. 9. ENGINEERING a. DATE TYPE OF ACTION June 25, 1997 CONSIDER PROPOSAL SUBJECT CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT FOR PROPERTIES ON LEONA COURT IN ALAMO SUIlMlTTED BY INITIATING DEPT tOlV Jay S. McCoy, Infrastructure Division Manager Engineering Department/Infrastructure Division ISSUE: Owners of properties on Leona Court are interested in connecting their homes to Central Contra Costa Sanitary District's (CCCSD) sewer system. BACKGROUND: A group of property owners whose properties are located on Leona Court in Alamo have contacted CCCSD staff to obtain information regarding connecting their homes to CCCSD's public sewer system. Three of these owners have written letters requesting that a Contractual Assessment District (C.A.D.) be formed. Copies of the letters are attached. There are a total of eight properties on Leona Court that could benefit from the extension of an a-inch diameter public sewer from Danville Boulevard to the end of Leona Court. The three owners who are interested in connecting their homes have contacted the other five owners to determine if those owners are also interested. The other five owners do not wish public sanitary sewer service nor do they wish to participate in a C.A.D. The addresses of the properties of the three interested owners are 101, 148, and 156 Leona Court. If a public sewer were extended to serve 101, 148, and 156 Leona Court, the property at 109 Leona Court would also be provided service. Such a public sewer extension is shown on the attached map. One of the basic premises associated with a C.A.D. is that the properties served by the sewer improvement are to be included within a C.A.D. Thus, if a C.A.D. were formed for the three properties whose owners are interested in sewer service, the fourth property (109 Leona Court) would be included within the boundary of the C.A.D. Under such a proposal, the distribution of costs would be as follows using a $48,000 total project cost and excluding any interest component to simplify the analysis. The three interested owners would each assume initial assessments of $16,000. When the fourth owner connected, a $12,000 equalization charge would be collected from the fourth owner. The $12,000 would be divided by three, and $4,000 would be returned to each of the three interested owners. The end result would be that each owner's total assessment would be the same -- $12,000. RflIEMB) AM) RECOMlIIEMJED FOR BOARD AC110N RAB l~ H:\JA Y\LEONACD2\PROPOSAL.PP 9/16/96 i'i:llllilllllillli'llll.lllJ.liil:liiIIIBIIIIIIIIIIIIIIII1I11I11 DATE June 25, 1997 I Page 2 of 7 SUBJECT CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT FOR PROPERTIES ON LEONA COURT IN ALAMO At the Board meeting on June 5, 1997, the Board reviewed criteria applicable to C.AD.s and concluded that the following criteria will be applicable. · The minimum number of properties needed to form a Contractual Assessment District will be five. · The payback period of the owner's assessments will be a maximum of ten years. · All costs are to be paid by the owners. (Participants pay nonparticipants' shares.) · Equalization charges will be established if there are nonparticipating owners. · The interest rate for owner's assessments and equalization charges will be 1 percent above the interest received by CCCSD on long-term investments. · A minimum of 70 percent of the properties to be sewered must have existing homes. A C.AD. which might be formed, including the properties at 101, 109, 148, and 156 Leona Court, meets all of the above criteria except for the first, which requires a minimum of five properties. Given the interest expressed in the attached letters, it is appropriate to consider modifying the first criteria and allow the C.A.D. to be formed with only four properties being included. Another issue was discussed at the Board meeting on June 5 concerning collection of money from owners who are not original participants in the C.AD. The issue relates to whether or not money is collected from nonparticipants after the ten-year assessment payback period is over. The proposed approach to this issue can be illustrated using the above example where the fourth owner would pay a $12,000 charge that would be distributed equally to the three original interested owners. If the fourth owner connects its home after the ten-year assessment period, the equitable approach is to collect the $12,000 charge plus interest. The way to accomplish this is to create a rebate account after the ten-year assessment period has passed. This rebate would be in effect for 50 years. The three owners who paid for the sewer extension would become the original installers, the sewer pipeline would become a rebate sewer, and the rules in the District Code pertinent to rebates would apply. There is certain justification for proceeding with a C.AD. for four properties on Leona Court. Before the initial action is taken to form such a C.A.D., staff wishes to have Board input on two issues: 1. The modification of the minimum of five properties required to form a C.A.D. to allow a C.AD. to be formed within four properties. ..:I:!:I:i:I::llill::.I.llIli!!!!..:II.I.I:..::I....~!..!Ii!il DATE June 25, 1997 I Page 3 of 7 SUBJECT CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT FOR PROPERTIES ON LEONA COURT IN ALAMO 2. Establishing a policy to have owners, who do not connect to a C.A.D. sewer during the ten- year assessment period, pay a rebate charge that would be given back to the owners who paid their C.A.D. assessments. RECOMMENDATIONS: · Authorize a C.A.D. to be formed on Leona Court consisting of four properties. · Require owners who do not pay a C.A.D. assessment to pay a rebate after the ten-year assessment period expires. Tbe Park Fallllv 664 DlUlhill Drive Danville, CA 94506 ---..- Home Phone S 10-736-8068 )' D1. .~ IE II Pf7 n: .,.,:\0 r- -"- \!i ~r; I.". . -......"7/!i UlI , /: ... .,' f U' ~ Ii; l I ......, 3 0 19m : April 26, 1997 I L--.._ ! CCCSD lNr: T " "">0,_. ,....__._-.:..... RAS. RUCTUR ': --_..._,._--~~~--~ "- Mr. Jay McCoy Infrastructure Division Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, Ca. 94553 RE: Request consideration to fonn a Contractual Assessment District for Leona Court, Alamo. Dear Jay, Per our conversation, we are confirming our desire to fonn a Contractual Assessment District for Leona Court in Alamo, California. It is our understanding the District needs in writing what this program means to us as home and property owners in Alamo. We are purchasing the home located at 148 Leona court. Through a home inspection, it was revealed the septic tank is in a state of decay and it may have to be replaced in the near future. We feel we need to begin the process of sewer line installation down Leona Court now not knowing when the septic system might fail. Two other homeowners on the street are in the planning stages of remodeling and recognize that they will also be facing a conversion to sewer. We understand most of the septic tanks on Leona are approximately the same age and most likely will need to be replaced within the next few years. It is our feeling, after talking to many of the other homeowners on the street, that they would be receptive to start this process now provided there was appropriate economic justification. If costs for the 8 inch main installation were shared evenly and financed through a tax bond, Leona Court homeowners would more readily welcome a hookup when their septic tanks fail. Without the bond, the cost of main line sewer installation is too great a financial burden for some of the homeowners to consider. We are encouraged by the fact that at least three and most likely four of the eight homeowners on Leona are ready now to fonn a contractual assessment district as mentioned Given the momentum that has been created here we urge the Board to approve this request at the earliest possible date. Please advise if you require further information. Sincerely, '> '--\. ~ . \j"-..J' .. '. ,---~,/ "\ c.. ~'L. .,' 'j .. /, '~t.'.v) \.../~{.",.~ /..-.J ~____ (j Mike and Phyllis Park 148 Leona Court Alamo, California. SCOTI N. AMARANT CONSTRUCTION SERVICES COMPANY F-- i i~ [J& [~ n Wi ~ w II :)r -------/'~: ,; nu: IUv ! L1 i PlItt - 6 1997 . i i iCCCSDINFRASTRUCT~RE 6500 SIERRA COURT DUBLIN, CA 94568 LIC. #356498 April 29, 1997 Mr. Jay McCoy Infustructure Division Manager Central Contra Costa Sanitary District 5019 Imoff Place Martinez, CA RE: Leona Court Alamo, CA - Contractual Assessment District Dear Mr. McCoy, By way of introduction, I am the agent/contractor for Alex and Neil Deeman, owners in residence of 101 Leona Ct. Alamo. This letter is to request, and to voice support, for a Contractual Assessment District to be formed for Leona Court Alamo, CA. Like many of the home owners in this area, the Deeman's would like to remodel and perhaps enlarge their home. However, considering the year their home was built, they are faced with the complications associated with the use of an aging septic tank and system. The Deemans would be prepared to support a tax bond that would assure equal cost be shared among all of the property owner's on Leona Ct. Without this tax bond, I believe the costs would be a deterent to this needed and welcomed improvement. We are hereby requesting that the Board approve this request at the earlist possible date. ~o tr~lY' , 7l-Jt ~ ~ ar~ CC: Alex and Neil Deeman Wm. D. McHugh Esq. Parks Family file VOICE (510) 551-7787 FAX (510) 551-7785 April 29, 1997 .. ./;/ ,/~?:> . IV ,/ -t,)' ~'~""'. ....... '- ,,,,'-c.:':'6''>-.,.,, . / b,.., ,,/I'v';~""'" "\Y,? '<'0"- 'u ~ ' '1;>(;, Or&. ~s- Mr. Jay McCoy Infrastructure Division Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinex, CA 94553 RE: Request consideration to form a Contractual Assessment District for Leona Court, Alamo. Dear Jay: Please accept this letter as our application to form a Contractual Assessment District for Leona Court in Alamo, California. We purchased our home in 1991 and have experienced ongoing septic problems, which have been repaired on a continuing basis. At this time, we are preparing to do extensive remodeling to our property, adding aproximately1,500 square feet to the kitchen, as well as to the garage. The thousands of dollars required in one payment for the new sewer line installation, would create a serious financial hardship for our family, as you may well understand. A fitting compromise would seem to be in having the project completed and the cost shared evenly among the eight homeowners through a tax bond. We do hope that you will see fit to grant us this option. If we can be of further assistance or provide additional information, please do not hesitate to ask. Gary a Hillary Swiggett 156 Leona Court Alamo, California 94507 c: .,. ""! V o c: o .. ~ Q. u> U -;;; :;- FEET o u ,- .. Central Contra Costa Sl Sanitary District a. o ..... '" ~ ~ .;, .... PROPOSED BOUNDARY OF LEONA COURT CONTRACTUAL ASSESSMENT DISTRICT ~A- Central Contra Costa Sanitary District BOARD OF DIRECTORS :ii:iii:i:i:il'II:;"'S""'I""'.'.I""'II<:;'."I'".'.""fj/\e.'.';...."'.e'.'...'......JI}} BOARD MEETING OF :.:.:.:.:.;.;. ......: .:.;.7.'...... -:.:. :':'. ".:.;.:.:. -:.:-:. .......;. '....;. ,'.;.".;: :. .::>.:..-'.;....;.;.:-;.;.;... :~::rr:~::::~r(~:::::;:;:)~:::::;:::::::::::~~:j~:::~~~~~::::~~:::::;:::{~.:.::~::::.:.~:~:~:~.:.:: ::::::: .;.:: ;:::::: -..;.: .~:~:~:~:~ .:.;.;.;.:.;::.: .;:: ::::.:::: ::::;:::::::=:::::::: . . Page 1 of 12 June 25, 1997 NO. 9. ENGINEERING b. DATE TYPE OF ACTION APPROVE PRINCIPLES OF AGREEMENT SUBJ ECT APPROVE PRINCIPLES OF AGREEMENT AS THE BASIS FOR NEGOTIATING THE LAMORINDA RECYCLED WATER PROJECT FINAL SUPPLY AGREEMENT WITH THE EAST BAY MUNICIPAL UTILITY DISTRICT SUBMITTED BY James Coe, Associate Engineer INITIATING DEPTIDIV Engineering/Planning ISSUE: Staffs from the District and the East Bay Municipal Utility District (EBMUD) have negotiated a draft Principles of Agreement (POA) for the Lamorinda Recycled Water Project Final Agreement. Board approval of the draft POA is required. BACKGROUND: The District and EBMUD currently have an agreement to jointly prepare a facilities plan and CEOA documentation for facilities to deliver up to 1,800 acre feet per year of recycled water to the Pleasant Hill, Walnut Creek, Lafayette, Moraga, and Orinda areas. The intent of the POA is to provide a general framework for the development of a Final Supply Agreement between the District and EBMUD. The Final Supply Agreement will specify costs, procedures, and terms regarding producing and delivering recycled water, and will detail the ownership responsibilities of new and existing recycled water facilities. The POA describes a mutually acceptable business relationship based on a clearly defined set of responsibilities and principles as summarized in Attachment 1. Attachment 2 is submitted as the complete POA to be considered for approval. A Board Workshop was held on April 24, 1997, to discuss the POA. Comments from Board members and legal staff have been included in the draft POA. RECOMMENDATION: Approve the Principles of Agreement. REVIEWED AND RECOMMENDED FOR BOARD A COON DJC RAB JC fJ f e iY!(J() INITIATING DEPARTMENTIDIVlSION H:\DA T A \POSPAPER\0703PPR .JC 9/16/96 Page 2 of 12 ATTACHMENT 1 PRINCIPLES OF AGREEMENT SUMMARY EBMUD: 1 . Purchases and reserves a firm capacity for recycled water delivery from CCCSD for approximately one million dollars, which is estimated based on the peak flow capacity reserved by EBMUD required for the first phase of the project. EBMUD's cost is based on EBMUD's reserved capacity compared with CCCSD's existing total facility capacity upstream from the Shell Pipe; EBMUD pays approximately an additional one million dollars for EBMUD's share of CCCSD's future Taylor Blvd. Pipe. 2. Commits to paying for their firm capacity of recycled water in lump sum and/or fixed amortized payments for 30 years (as in a "take or pay" contract) regardless of quantity of recycled water taken; 3. Pays for, builds, and operates all Shell Pipe delivery facilities (running south from the intersection of Taylor Blvd. and Pleasant Hill Rd.) owned by EBMUD without any cost to CCCSD; 4. Owns and operates the Shell Pipe, which is transferred to EBMUD when EBMUD issues Notice to Proceed to their contractor to start construction. 5. Pays approximately $100,000 as a reimbursement of costs to CCCSD for the Shell Pipe. EBMUD will own the Shell Pipe unconditionally after time of transfer; 6. Grants CCCSD first right of refusal if Shell Pipe is to be sold by EBMUD; 7. Pays O&M costs quarterly to CCCSD for actual costs of producing and delivering recycled water to Shell Pipe (on a flow proportional basis shared with all recycled water consumers); 8. Is not required to take a minimum quantity of recycled water at any time; 9. Is limited to the specified peak hourly flow demand reserved by EBMUD. CCCSD: 1 . Builds, owns, operates and finances (with reimbursements from EBMUD) all capital facilities required to treat and deliver recycled water to EBMUD at the Shell Pipe; 2. Produces Title 22 recycled water and delivers it to EBMUD at the Shell Pipe on demand, which will be limited to a peak flow capacity. Page 3 of 12 ATTACHMENT 2 PRINCIPLES OF AGREEMENT EBMUD/CCCSD LAMORINDA RECYCLED WATER PROJECT Preamble The purpose of these Principles of Agreement (Agreement) is to provide a framework for the East Bay Municipal Utility District (EBMUD) and the Central Contra Costa Sanitary District (CCCSD) to develop a Final Supply Agreement for implementation of the Lamorinda Recycled Water Project (LRWP). A. General Principles These General Principles underlie the intent of the proposed Final Supply Agreement. 1. EBMUD and CCCSD believe prudent water management in California requires effective water conservation and reuse to meet diverse water needs. 2. EBMUD and CCCSD believe that it is sound public pOlicy to develop recycled water resources through financially and environmentally sound projects. 3. EBMUD and CCCSD believe that the use of existing treatment facilities for recycled water projects benefits the ratepayers of both districts by reducing capital costs associated with the production and delivery of recycled water. h:data:cae:ebmud paa. wpd Page 4 of 12 4. EBMUD and CCCSD declare their intent to establish and maintain a business relationship that facilitates the implementation of cost-effective recycled water projects. 5. EBMUD and CCCSD agree that it is in their mutual interest to pursue the development of a project to deliver recycled water to EBMUD customers generally located in the Lamorinda and central areas of Contra Costa County, including portions of Pleasant Hill, Walnut Creek, Lafayette, Moraga, and Orinda. 6. EBMUD and CCCSD agree that "recycled water" refers to wastewater treated to meet Title 22 standards of the California Code of Regulations for disinfected tertiary reclaimed water. 7. EBMUD and CCCSD agree that, where appropriate, CCCSD will be the producer and EBMUD will be the purveyor of recycled water to EBMUD customers for those projects approved by each agency's respective governing boards. 8. EBMUD and CCCSD agree that a successful recycled water project requires a mutually supported public education and participation program. h:data:coe:ebmudpoa. wpd Page 5 of 12 B. Shell Pipeline Ownership/Operation 1. CCCSD shall sell to EBMUD that portion of the Shell Pipeline, generally beginning south of the junction with the CCCSD transmission line located at EBMUD's water service boundary and continuing on through the town of Moraga, (hereafter "Shell Pipeline"), conditioned upon the inspection and acceptance of said pipeline by EBMUD and its Board of Directors. The sale shall be for an agreed upon amount of money, which is commensurate with CCCSD's costs for acquiring the Shell Pipeline and rights-of-way. These costs are estimated by CCCSD at $100,000, including legal fees, consultant's billings, fees or charges for easement acquisition, and other applicable "out-of-pocket" costs excluding CCCSD staff time, and will be specified in the Final Supply Agreement. 2. Upon execution of these Principles, CCCSD hereby commits to sell the Shell Pipeline to EBMUD for the LRWP. CCCSD and EBMUD shall complete transfer of title of, and funds for, the Shell Pipeline upon issuance by EBMUD of the Notice to Proceed to the contractor for construction of LRWP facilities required to deliver sufficient quantities of recycled water as specified in the Final Supply Agreement. h:data:coe:ebmudpoa. wpd Page 6 of 12 3. CCCSD shall be responsible for delivering recycled water to EBMUD at the Point of Delivery (as defined in the Final Supply Agreement) according to quantity and quality requirements as specified in the Final Supply Agreement and Sections C. and D. herein. 4. EBMUD shall take delivery of recycled water at the Point of Delivery to be agreed upon in the Final Supply Agreement. EBMUD shall be solely responsible for delivery of water to customers within its service area. 5. EBMUD shall be responsible for financing, funding, design and construction of improvements and repairs necessary in order to operate and maintain the Shell Pipeline. EBMUD shall own, operate, and maintain all recycled water delivery facilities downstream of the Point of Delivery. 6. In the event that at any time EBMUD desires to sell the Shell Pipeline to a third party, CCCSD shall have the first right of refusal to purchase the Shell Pipeline from EBMUD. C. Quantity 1. CCCSD shall not enter into any subsequent agreements for the delivery of recycled water which will impede its ability to provide recycled water h:data:coe:ebmudpoa. wpd Page 7 of 12 to EBMUD customers in the quantity and quality specified in the Final Supply Agreement. 2. EBMUD may vary the actual quantity of recycled water to be delivered by CCCSD in any given year within the maximum limits to be specified in the Final Supply Agreement without penalties or need to modify or terminate the Final Supply Agreement. 3. The recycled water supply reserved for EBMUD shall be established during the final project design and shall be based on an estimated annual demand by EBMUD LRWP customers, which is currently estimated to be 800 to 1,900 acre feet per year. 4. EBMUD shall not take more recycled water than the maximum limits to be specified in the Final Supply Agreement without prior written consent from CCCSD. D. Quality 1. CCCSD shall produce recycled water at its Martinez treatment plant in accordance with Title 22 (California Code of Regulations) standards for disinfected tertiary reclaimed water. As producer, CCCSD will provide to EBMUD all recycled water quality sampling data as necessary to meet h: d ata:cae :ebmud paa. wpd Page 8 of 12 the Regional Water Quality Control Board (RWQCB) project permit or other permit requirements. 2. CCCSD shall produce the recycled water by filtering and disinfecting treated municipal sewage. If any federal, state or local agency having jurisdiction over the Project (other than the districts) requires substantially more or substantially less stringent water quality or monitoring requirements that materially affect the production and delivery of recycled water, the Final Supply Agreement shall be modified, upon mutual consent of the parties, to accommodate said requirements. E. Costs/Rates 1. CCCSD shall document and openly exchange the reimbursable O&M expenses and capital cost information associated with the production and delivery of recycled water to EBMUD. All documentation shall be formatted as described in the Final Supply Agreement. 2. EBMUD shall reimburse CCCSD for CCCSD's certain operation and maintenance (O&M) expenses (as defined in the Final Supply Agreement). The reimbursable O&M expense shall be limited to the "above baseline" expenses of producing and delivering tertiary treated effluent to EBMUD at the Point of Delivery. These expenses exclude all O&M expenses required to produce secondary treated final effluent up to and including discharge through the outfall. h:data:coe:ebmudpoa. wpd Page 9 of 12 3. EBMUD/s obligation for CCCSD recycled water O&M expenses shall be determined on a "real time" flow proportional basis shared with other non-EBMUD customers actually receiving CCCSD recycled water during any given Fiscal Year (including the CCCSD Wastewater Treatment Plant). O&M expenses shall be paid by EBMUD to CCCSD based on an O&M rate applied to the quantity of recycled water taken by EBMUD in conjunction with CCCSD/s meter reading schedule, which shall occur no more frequently than quarterly. The O&M rate shall be limited to recovering the eligible, real time flow proportional share of O&M expenses incurred by CCCSD for those facilities required to deliver recycled water to EBMUD at the Point of Delivery. 4. EBMUD shall be solely responsible for all operations and maintenance (O&M) costs associated with EBMUD facilities downstream from the Point of Delivery. 5. Capital costs recoverable by CCCSD shall be limited to the "incremental" capital cost of producing and delivering recycled water to the Point of Delivery excluding all capital costs related to the production of CCCSD secondary treated final effluent, or for CCCSD facilities solely dedicated to serving other CCCSD customers. CCCSD shall be responsible for financing, funding, and constructing improvements and facilities (pumping plants, reservoir, distribution pipelines, etc.) owned and operated by CCCSD and required to deliver recycled water to EBMUD at the Point of Delivery. 6. The incremental capital costs for existing facilities shall be allocated to EBMUD based on the ratio of EBMUD/s maximum customer demand to the maximum available CCCSD facility capacity (demand/capacity ratio) to be described in greater detail in the Final Supply Agreement. EBMUD, by paying for a portion of the incremental capital costs/ shall have h:data:coe:ebmud poa. wpd Page 10 of 12 purchased a "firm capacity" in the existing facilities including treatment and delivery. Major repair or replacement of CCCSO's tertiary recycled water facilities allocated for the LRWP shall be defined as incremental capital costs in the Final Supply Agreement. 7. The capital costs, including future major repairs or replacement, for any new facilities owned by CCCSO and constructed solely for delivering recycled water to EBMUO shall be allocated entirely to EBMUO. 8. The capital costs, including future major repairs or replacement, for the new pipe in Taylor Boulevard for delivering recycled water primarily to EBMUO shall be shared with CCCSO on a demand/capacity ratio to be described in greater detail in the Final Supply Agreement. 9. Capital costs shall be paid by EBMUO to CCCSO through a single lump sum payment or on an amortized payment schedule as specified in mutually agreed upon terms in the Final Supply Agreement. 10. An exhibit shall be included in the Final Supply Agreement that specifies project costs eligible or ineligible for reimbursement by either district. F. Reliability 1. EBMUO and CCCSO shall agree to work together in defining a set of design and operating standards to be used to ensure efficiency and safety of operation. hod ata:coe :ebmudpoa. wpd Page 11 of 12 G. Compliance with Law/Risk/lnsurance/lndemnification 1. Both districts agree that each district shall be responsible for its own acts and omissions and compliance with all applicable laws with respect to the LRWP. Should one district become aware of actual or potential violations of applicable laws or regulations by the other district, that district shall promptly inform the other district. 2. CCCSD will indemnify, defend, and hold EBMUD, its Directors, officers, and employees free and harmless from and against any and all loss, liability, expense, claims, costs, suits and damages including attorney fees arising out of CCCSD's intentional acts, errors, or omissions in operation or performance of its responsibilities under this Agreement and the Final Supply Agreement. 3. EBMUD will indemnify, defend, and hold CCCSD, its Directors, officers, and employees free and harmless from and against any and all loss, liability, expense, claims, costs, suits and damages including attorney fees arising out of EBMUD's intentional acts, errors, or omissions in operation or performance of its responsibilities under this Agreement and the Final Supply Agreement. 4. As purveyor, EBMUD shall be responsible for obtaining and administering RWQCB permits and other permits as may be required for the distribution and sale of recycled water. H. Term/Termination/Survivorship 1. The initial term of the Final Supply Agreement shall be 30 years. During the last two years of the initial term, either party shall have the option to h: d ata:coe:ebmudpoa. wpd Page 12 of 12 request renewal of the Final Supply Agreement. Both parties agree to meet and, if decided to be necessary, negotiate in good faith for an extension to, or modification of, the Final Supply Agreement. 2. Both districts agree to strive to identify any agreement terms that should survive termination and specify such terms under a "survivorship" section in the Final Supply Agreement. I. Dispute Resolution/Amendments 1. Both districts agree to develop a mutually acceptable dispute resolution process. 2. The districts shall be able to amend, modify or terminate the Final Supply Agreement by mutual written consent. J. Final Supply Agreement Development The detailed terms and conditions of the Final Supply Agreement for implementation of the LRWP will be established in an extensive written mutual agreement between the parties. The Final Supply Agreement will address recycled water arrangements including quantity, quality, related financial terms, insurance, reliability and other topics. The Final Supply Agreement must be approved in specific form and content by the EBMUD and CCCSD Boards of Directors. h: d ata:coe :ebmudpoa. wpd ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS ........................................................................................................... .;.;.;.:.;.;.;......:.m:.:...::.:I:...:::I..I......I...:.:...::.:I..:.;:.;.;.;.;.....::~;.;...:.;.;:I....:.:IZ......II....::.;.;.;.:.;.;.;.;.:.;.;.;.:::.;.:.;.: BOARD MEETING OF :~:~:~:~:::~... ':;':': .:::.: ';' .:~;~ 'H: ':'::' .::::....:.. :...:..... '.:.:.'> tfft::~rt~~:::;;;;;:::t::;;;;::::~:)f::::~t:;:\::;;;:;:~tdt::::~rt}~~~f::)>:::;:::->~<-:.::::;:~::::.)~::::.i?~~?:~::::::::::::::::::::::: Page 1 of 26 SUBJECT NO. 9. ENGINEERING c. DATE June 30, 1997 TYPE OF ACTION AUTHORIZE EXECUTION OF LEASE AGREEMENT AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A LEASE AGREEMENT WITH THE CONTRA COSTA WATER DISTRICT (CCWD) FOR USE OF CCCSD DRYING BASINS SUBMITTED BY P. Gail Chesler, Associate Engineer INITIATING DEPT/DIV Planning/Engineering ISSUE: Board authorization is required for the General Manager-Chief Engineer to execute a lease agreement. BACKGROUND: On December 7, 1995, the Board authorized staff to negotiate a lease agreement with CCWD. The lease agreement allows CCWD to dewater treatment residuals from the Bollman Water Treatment Plant in drying basins located on CCCSD property. The three drying basins have a total area of 9% acres and are located as shown on Exhibit C of the Lease (Attachment I). Major components of the lease include the following: · The term of the initial lease is 9 years, after which the lease may be renegotiated. · All design and construction of modifications or capital improvements to the drying basins are the responsibility of CCWD with CCCSD's approval/review. · Operation of the drying basins, including pumping of the residuals from Bollman, turning of the residuals to enhance drying, and removal of the dried materials, will be the responsibility of CCWD. · CCCSD will receive and treat the decant water from the dewatering operation. The flow will be metered and paid for at the District's normal rate. · Other fees and charges received by CCCSD include a lease fee of $90,000 for the first year, escalating with the CPI on a yearly basis, a facilities capacity fee of $120,000. CCWD will be a Class II Industrial Discharger to the treatment plant and will require an annual Source Control permit. Several paragraphs of the lease agreement relate to termination of the lease and environmental concerns. These sections have been carefully written and reviewed by the staff and legal counsel of both districts and are believed to be sufficient to address issues which could arise. CCWD will begin design of the improvements to the basins upon execution of this lease, and construction of the modifications is anticipated in the fall of 1997. Initial flow of residuals to the basins is expected in the spring 1998. H :\DA T A \POSP A PER\0703 POS 2. WPD 6/24/97 .................................................... ................. .............................j :~:~::~:~::~::~:~:~:~:~:~::::tiii:i.lml:i\ki.m~i DATE :::::::::::::::::::::::::::::::rr~\:l:Q: ~{It ;\iil:I~:"::::::::;::::::::::. ~.::.::::.~..:.~.::.~..:.~.::.~.::.~.:...~.::.~....:..;...~.....~..:.~.~:...;:.~..:.~........;...~.:.;~........;..~.....~.....~.:..~.....~.....~.:......;:.:.;;...~.'.'. J u n e 30, 1 997 =:::::=:::::::::::;:::::=;=:::;.:.::::;:;::::.:.:.:.:::::::.:.,.:.::::;.:.::::;.:.::::;.:.:::::.;.,.;.::::;.:.::::;.:.:.:::::::::::::::::':' . . I Page 2 of 26 SUBJ ECT AUTHORIZE GENERAL MANAGER/CHIEF ENGINEER TO EXECUTE THE LEASE WITH THE CONTRA COSTA WATER DISTRICT FOR THE USE OF THE DRYING BASINS Staff has concluded that this project is exempt from the California Environmental Quality Act (CECA) under District CECA Guidelines Section 18.2 since it involves minor alterations and operation of an existing public facility with negligible or no expansion of use beyond that previously existing. Board of Directors' approval of this project will constitute an independent finding that this project is exempt from CECA. RECOMMENDATION: Authorize General Manager-Chief Engineer to execute a lease agreement with CCWD for use of the CCCSD drying basins. LEASE BETWEEN CENTRAL CONTRA COSTA SANITARY DISTRICT AND CONTRA COSTA WATER DISTRICT FOR DRYING BASINS This lease of Drying Basins (Lease) is executed on , 1997 (the "Execution Date") between Central Contra Costa Sanitary District (CCCSD), a local public entity organized under the Sanitary District Act of 1923, and Contra Costa Water District (CCWD), a local public entity organized under the County Water District Law. The Execution Date is the date the last party has signed this Lease. RECITALS a. Whereas, both districts believe that it is sound public policy to make productive use of existing facilities and that a lease of the drying basins on the terms and conditions set forth herein would benefit the rate payers of both districts; b. Whereas, while the lease of CCCSD property is compatible with current and projected laws and regulations, and land use activities, both districts realize the possibility of unforeseen circumstances which could affect the duration of or operations pursuant to the Lease. c. Whereas, the districts are authorized to enter into this Lease pursuant to the following laws, regulations and orders; (i) CCWD's enabling legislation, the County Water District Law, including without limitation Water Code Sections 31048 and 31049; (ii) The National Pollutant Discharge Elimination System (NPDES) permit for CCCSD, issued by the San Francisco Bay Regional Water Quality Control Board (RWQCB), May 24, 1995 which permits the use of the drying basins by CCCSD for drying and short term storage of CCWD's alum sludge. (iii) The Sanitary District Act of 1923, commencing with Health and Safety Code Section 6400. d. Whereas, CCWD has submitted to CCCSD, and CCCSD has approved in concept, the conceptual plans (1 )for the design of the contemplated new capital facilities and modifications of existing facilities related to the satisfactory transmission of residuals from the treatment of water for potable uses and filter backwashing (collectively called "residuals") from CCWD's Bollman Water Treatment Plant to the CCCSD Basins, the drying and hauling of the residuals, and the flow of the decant to the CCCSD treatment plant, a copy of which is attached as Exhibit A and incorporated herein by reference, and (2) for the operation of these facilities, a copy of which is attached as Exhibit B and incorporated herein by reference. Lease for Dl)'ing Basins Page I 6/30/97 NOW, THEREFORE, IT IS AGREED THAT: 1. GENERAL a. CCWD hereby leases the CCCSD drying basins designated as Basins I, II and III, hereinafter "Basins", for an initial term of 9 years, solely for the drying of residuals from its Bollman Water Treatment Plant. The locations of the Basins are shown on Exhibit C which is incorporated herein by reference. The basins encompass approximately 9.51 acres of real property located within the CCCSD treatment plant boundary. b. CCWD shall be responsible for the planning, permitting, design and construction of any and all new capital facilities and modifications of existing facilities related to the satisfactory transmission of residuals to the CCCSD Basins, the drying and hauling of the residuals, and the flow of decant to the CCCSD treatment plant. Other construction covered by this paragraph includes replacement of the emergency ash and sludge storage cited in ~ 1m and provision of wash-down water for trucks, if construction is required. CCCSD shall review and provide written comments, if any, on the draft final capital improvements design within 15 business days of submittal to CCCSD. CCWD shall incorporate any such comments into the design of the facilities and shall resubmit the design to CCCSD. CCWD and CCCSD agree to meet to resolve any outstanding CCCSD review comments. CCCSD agrees to utilize its review authority with reasonableness, taking into account CCCSD's approval of the conceptual plans described in recital d. and attached hereto as Exhibits A and B, and the cost and practicality of the required design changes. No construction shall begin until this process has come to resolution. c. CCWD agrees to operate the basins so as not to create an odor nuisance. If, as a direct result of CCWD operations within the basins, odors are detected that could reasonably be expected to contribute to off-site odors, CCWD shall act immediately and diligently to eliminate the odors with the oversight ofCCCSD. IfCCWD is unable to control the odors, CCCSD can direct that the operations in the basins cease until the problem causing the odors is addressed. CCCSD agrees to exercise its authority to order the cessation of operations with discretion, giving CCWD a reasonable amount of time to remedy the odor problem. d. CCCSD agrees to allow CCWD to regularly discharge decant from the Basins to the CCCSD wastewater collection and treatment system. This discharge shall not be unreasonably denied during the term of the Lease so long as: 1) CCWD has paid CCCSD the pertinent fees, charges and any other costs associated with this decant as listed in Section 3, Rent and Exhibit D, and 2) discharge of the decant does not cause CCCSD to violate its NPDES permit or any provision of law. However, CCWD shall be subject to the CCCSD pretreatment requirements and agrees to take all reasonable measures to comply with CCCSD enforcement orders. Notwithstanding the above, CCWD shall not discharge into the CCCSD wastewater collection and treatment system any substance categorized as hazardous and nothing in this Lease for Drying Basins Page 2 6/30/97 agreement shall prevent CCCSD from carrying out the objectives of the CCCSD Source Control Ordinance. e. CCWD shall be responsible for all operations and maintenance of the facilities related to the drying and transportation of the residuals, including the Basins, roadways, embankments, pumps, weirs, valves and pipes. CCWD shall also be responsible with CCCSD advance written approval for repairing levees, berms, and roadways which are damaged as a result of work done by CCWD under the terms of this Lease, including construction and hauling. CCCSD shall be responsible for routine maintenance and repair of roadways, comparable to historic levels of effort, from the entrance gate through CCCSD treatment plant to the Basins. f The CCCSD plant site is fenced with gate-controlled access. CCCSD shall continue to provide historic levels of security at the site, limiting access to authorized personnel. CCWD shall coordinate ingress and egress with CCCSD security personnel. CCWD may use the east access gate [near the railroad tracks] as depicted on Exhibit C for ingress and egress in a manner calculated to maintain historic levels of security, which ingress and egress shall not unreasonably be denied. g. CCWD shall monitor the residuals delivered to and produced by the Basins, and shall report to CCCSD in writing concerning the results of such monitoring. A copy of the laboratory test sheets for those components required to be monitored and tested for by CCCSD shall be included in the report. CCWD shall comply with all applicable requirements of the CCCSD source control ordinance and the Class II permit application and monitoring program, incorporated herein by reference, for those decant discharges into CCCSD sewage collection system including decant and residuals sampling frequency and reporting. Permit renewal is a yearly process and the chemicals and permit limits and monitoring requirements included in the permit may be amended on a yearly basis, as changes occur in the CCCSD treatment train or as changes are made necessary for environmental compliance. If such changes require a change in CCWD operation or facilities, CCCSD may impose a compliance schedule. CCCSD agrees to be reasonable in its imposition of a compliance schedule, taking the urgency of the situation and practical time for compliance into account. Initial monitoring requirements for the liquid decant and for the water treatment residuals are included as Tables 1 and 2, respectively. CCWD shall provide and calibrate, to the reasonable satisfaction of CCCSD, a flow metering device to determine the quantity of decant flow from the Basins which would be discharged to and treated by CCCSD. Lease for Drying Basins Page 3 6/30/97 Table 1. Compliance Sampling and Monitoring Requirements for Decant Industrial User: Contra Costa Water District - Drying Basins Sampling Media: Decant Sampling Schedule Reporting Period January - one day only November 1 through January 31 April - one day only February 1 through April 30 July - one day only May 1 through July 31 October - one day only August 1 through October 31 Sampling Period: 24 hours Sampling Location: Sampling Box in Decant Discharge Line S r R amplm~ equlrements: Constituent Sampling Comments Method Priority Metals Composite Sb As Cd Cr(T) Cu Pb Hg Ni Se Ag Tl Zn Iron Composite Cyanide Composite Grab Phenolic Compounds Composite Grab pH Grab Oil & Grease (O&G) Composite Grab Analyze extracted O&G for mineral fraction if Total TTO Composite Grab O&G> 1 00 mgIL. TTO Composite EP A Method 624 BOD Composite EP A Method 625 (including organochlorine pesticides & COD Composite PCBs) TSS Composite Diazinon and Composite Chlorpyrifos Composite UV Transmittance Eliza Method M 't ' R om orme; eQUlrements: Characteristic Type of Monitoring Comments Flow Totalizing Chart Recorder Effluent flow of decant solution pH Meter Chart Recorder Lease for Drying Basins Page 4 6/30/97 Table 2. Compliance Sampling and Monitoring Requirements for Residuals Industrial User: Contra Costa Water District - Drying Basins Sampling Media: Residuals Sampling Schedule Reporting Period January - one day only November 1 through January 31 April - one day only February 1 through April 30 July - one day only May 1 through July 31 October - one day only August 1 through October 31 Sampling Period: Grab samples Sampling Location: Designated Water Treatment Residuals Composite Sampling Locations Samplme; Reauirements: Constituent Sampling Method Comments Priority Metals Composite Grab Sb As Cd Cr(f) Cu Pb Hg Ni Se Ag TI Zn Cyanide Composite Grab Phenolic Compounds Composite Grab pH Composite Grab Oil & Grease (O&G) Composite Grab TTO Composite Grab EP A Method 624 TTO Composite Grab EPA Method 625 (induding organochlorine pesticides & PCBs) M R omtorme: eamrements: Characteristic Type of Monitoring Comments Volume Logs to record the volume of V olume in cubic yards shall be recorded for each truck solids transported off-site load transported off-site. Lease for Drying Basins Page 5 6/30/97 h. CCWD shall bear all expenses related to the construction and modification of any and all capital improvements, including but not limited to residuals transmission, drying and hauling, and decant flow to the CCCSD treatment plant. This shall include, but shall not be limited to, clearing the Basins, hardening of basin bottoms, additional effluent weir boxes, flow measurement devices, piping, valves, and valve operators. Any and all designs for capital improvements, and modifications, and equipment used in the operation of the Basins and above-ground fuel facilities are subject to CCCSD's written comments, as set forth in paragraph 1 b, above. CCCSD shall allow CCWD, at a site designated by CCCSD, to store a limited amount of equipment used in the operation of the Basins and for parking vehicles used in the Basins' operation. 1. CCWD shall confirm the condition of, and rehabilitate where necessary, the existing pipeline to be used to convey residuals from the Bollman Water Treatment Plant to the Basins. J. CCWD shall certify to the satisfaction of CCCSD that residuals transmitted to the Basins, are not hazardous or designated wastes pursuant to all applicable laws and regulations. Any contamination of soil or groundwater found to be attributable to the CCWD residuals or operations on CCCSD property shall be cleaned up and remediated by CCWD to the reasonable satisfaction of CCCSD and of applicable regulatory authorities. k. Prior to the construction of basin improvements, a soils investigation of the Basins shall be conducted which examines the existing soil and ground conditions on and around the basins. The purpose of this investigation shall be to confirm that the Basins are not contaminated by hazardous materials, as defined in section 2782.6(d) of the California Civil Code (notwithstanding subdivision (t) of that section). The report shall be used to document the baseline conditions in the basins so as to be able to determine the source of any future contamination of the basins. This investigation shall be performed by a consultant under contract with CCWD. The estimated cost of this investigation is $15,000. CCWD shall pay one-half of the actual costs of this investigation and shall invoice CCCSD for the other one- half of the actual costs of this investigation, which CCCSD shall pay within 30 days after receipt of the invoice. CCWD shall have the right to terminate or renegotiate the lease if the initial site assessment concludes that hazardous materials (defined above) are present and ifCCWD and CCCSD cannot agree on any potential cost sharing of the costs of remediating or removing such materials. If CCWD chooses to terminate the lease under this paragraph, then no payments will be due to CCCSD, except that CCWD agrees to reimburse CCCSD for their actual share of the site investigation cost discussed above (estimated at $7,500). If any activity of CCCSD subsequent to the initial site assessment results in the presence of any hazardous materials ( defined above) on or about the Basins, CCCSD agrees to pay for Lease for Drying Basins Page 6 6/30/97 all clean up costs and other remedial costs arising out of such presence of the hazardous materials ( defined above). CCCSD's status as owner of the Basins is not an "activity of CCCSD" within the meaning of this Paragraph. If any activity of CCWD subsequent to the initial site assessment results in the presence of any hazardous materials (defined above) on or about the Basins, CCWD agrees to act promptly to address such presence as required by applicable laws and regulatory authorities, and to pay for all cleanup costs and other remedial costs arising out of such presence of the hazardous materials (defined above). It is not the intent of CCCSD to hold CCWD responsible for contamination of the Basins which is not caused by CCWD's activities in constructing, operating, or using the Basins. The parties agree that they will jointly contract and pay in equal shares for a final site assessment to be completed at or near the ending date of this Lease. The purpose, in part, of this site assessment is to assist in determining whether hazardous materials (defined above) have been deposited on or about the Basins since the time of the referenced initial site assessment. l. CCCSD shall allow tractor trailer trucks and other heavy equipment limited to H-20-rated vehicles onto the Basins to perform construction and modification activities as generally described in paragraph lh, and to load and off-haul dried residuals to a disposal site selected by CCWD. Removal, hauling and disposal of dried residuals shall be scheduled and paid for by CCWD, and shall be the sole responsibility ofCCWD. The schedule shall be coordinated with CCCSD. m. Prior to receipt of any residuals in Basin II, CCWD shall replace the existing emergency ash and sludge storage unloading station, now in Basin II, at a plant location to be designated by CCCSD and depicted on Exhibit C. The replacement of this emergency storage unloading station shall consist of an asphalt ramp similar to the existing configuration which allows dumping of materials from the end of tractor trailer trucks. The station will include a 5' berm surrounding an area 1 acre in size. The relocated station shall provide equivalent functionality, and be approved in writing as part of the design review described in paragraph lb by CCCSD prior to construction. n. CCCSD hereby provides CCWD with an option to lease all or a portion of CCCSD real property designated as Basin IV for a term which will coincide with the termination of the Lease of the Basins as defined in Section 2 of this Lease. Basin IV encompasses approximately 3.3 acres of real property within the CCCSD treatment plant site. See Exhibit C for the location of Basin IV. CCWD may exercise this option only in the event that CCCSD determines that Basin IV is available and notifies CCWD in writing of same. If CCWD chooses to exercise the option it must be in writing within one year of written Lease for Dlying Basins Page 7 6/30/97 notification of its availability. CCWD may utilize Basin IV, upon the exercise of the option, only to dry residuals from its Bollman Water Treatment Plant. All of the terms of this Lease apply equally to Basins, I, II, III, and to Basin IV if the option to lease Basin IV has been exercised. The calculation offees and charges for the lease of Basin IV shall be as set forth in Table 3 of this Lease and Exhibit D. o. Prior to the commencement offlow to the Basins, CCWD shall develop a Basins Operations Plan which shall be coordinated with CCCSD. The Operations Plan shall describe the following, but not limited to: safety, security, site access by CCWD and contractor personnel and vehicles, flow control and measurement, and identification of key staff for emergency notification. p. CCWD shall comply in all respects with all environmental laws now or hereafter applicable to the Basins, the residuals, and the decant or the use, modification, maintenance or operation of the Basins. q. CCWD and CCCSD shall jointly establish, and maintain during the duration of this Lease, an interest-bearing account with a financial or governmental institution mutually acceptable to CCCSD and CCWD as the Escrow Account. CCWD shall pay all escrow fees. 2. TERM This Lease shall become effective on the Effective Date. The Effective Date is defined as the earlier of: (1) one year from the Execution Date as set forth above; or (2) the date CCWD issues the notice to its contractor to proceed on the first of the capital facilities or modification of existing facilities related to the satisfactory transmission of residuals to the CCCSD Basins, the drying and hauling of the residuals, or the flow of decant to the CCCSD treatment plant. The Lease shall continue in effect for a period of nine (9) years from the Effective Date, unless the parties agree by executed writing to a renewal or extension of the term. At the end of the initial 9-year term of the Lease, CCWD shall have the option of extending the lease in 5-year increments upon approval by CCCSD. The terms of the lease are subject to renegotiation at that time. If CCCSD shall suspend CCWD's enjoyment of the lease for a period of time which causes CCWD to have substantial operating problems in connection with its activities under the Lease, or in any way make it impossible or impractical for CCWD to continue operating the basins, CCWD can, after making all required payments under the lease current, declare the Lease terminated by CCCSD action and suspend all future lease payments. If this occurs at any point during the first five years from the Effective Date, all monies retained in the escrow account shall be returned to CCWD pursuant to the sample escrow instructions (a copy of which is attached as Exhibit E and incorporated herein) upon CCWD's informing the escrow holder in writing, with a copy to CCCSD, that CCWD has declared the Lease terminated by CCCSD action. Lease for Dl)'ing Basins Page 8 6/30/97 CCWD shall have the right, in addition to its rights under the preceding paragraph, to unilaterally terminate the lease at any time, with the following requirements: 1. Facilities Capacity Fee payments shall be made current prorated on a quarterly basis to the date of termination, and 2. Lease fee payments shall be made current prorated on a quarterly basis to the date of termination, and 3. Sewer Service Charge payments shall be made current, and 4. Escrow funds shall be released to CCCSD, and 5. CCWD shall pay CCCSD a termination administration fee of$50,000 and 6. CCWD shall notifY CCCSD in writing of its unilateral termination of the Lease pursuant to this Section 2. Upon such notification, CCCSD may notifY the escrow holder in writing with a copy to CCWD, of CCWD's unilateral termination, upon which notification all monies retained in the escrow account shall be returned to CCCSD, pursuant to the sample escrow instructions. CCCSD shall have the right to unilaterally terminate the Lease, but only if CCWD has not paid a fee or charge which is due pursuant to this Lease within sixty (60) days of notification by CCCSD that such fee or charge is due. CCCSD shall notifY the escrow holder in writing, with a copy to CCWD, of its unilateral termination of the Lease pursuant to this Section 2. Upon such notification, all monies retained in the escrow account shall be returned to CCCSD, pursuant to the sample escrow instructions. Upon the expiration or termination of the Lease, CCWD shall return the property in a condition reasonably acceptable to CCCSD. CCWD shall not be required to remove basin lining, decant structures, or piping. Nothing in this section shall limit CCWD's obligation to perform a final site assessment or to pay for any required clean-up and remediation costs. Lease for Drying Basins Page 9 6/30/97 3. RENT CCWD shall pay to CCCSD in lieu of rent for the Basins certain fees and charges described in this section and listed in Table 3 which appears below and are further described in Exhibit D which is incorporated herein by reference. Annual fees and charges paid by CCWD may be adjusted by CCCSD no more than or less than the adjustments to CCCSD industrial customers, as described in the CCCSD Code, Title 6 and any amendments and superceding provisions, with the exception of the Lease Fee which is further defined in note 1 of Table 3. Table 3. Fees and Charges for Leasing Land and for Providing Decant Treatment! I INITIAL FEES FIRST YEAR'S AND CHARGES ANNUAL FEES AND CHARGES I 1. Lease Fee note 1 $95,000 I I 2. Class II Permit Fee note 2 $500 $3,355 I 3. Facilities Capacity Fee note 3 $120,000 I 4. Sewer Service Charge note 4 $10,000 I I TOTAL $120,500 $108,355 I note I The annual amount of the Lease Fee shall be paid in four equal quarterly installments either to the Escrow Account described in Section Iq above or directly to CCCSD as specified in Table 2 of Exhibit D. In any given year, the amount to be paid directly to CCCSD shall be paid prior to payments being paid to the escrow account. Sample escrow instructions are attached as Exhibit E, which is incorporated by reference. If, after the exercise of reasonable diligence, an escrow holder to administer the Escrow Account is not engaged, the portion of the Lease fee payment that would have been paid to the escrow account shall instead be deposited by CCWD in an interest-bearing account with a financial or governmental institution. Selection of the institution and management of the account shall be jointly agreed upon between the two agencies. Any account fees charged by the institution holding the account shall be paid by CCWD. The funds, so deposited, together with interest thereon, less any charges imposed against the account, shall be disbursed in accordance with this and the following paragraph and Exhibit E. The signatures of both agencies shall be required for disbursal of these funds, in contrast to the arrangements described for disbursement by the escrow holder. The initial installment of the Lease Fee is payable within 30 days of the Effective Date of this Lease. Subsequent installments shall be payable within 30 days of the same date of the month as the initial installment but in the fourth, seventh, and tenth months after the month in which the initial payment was due. For example, if the Effective Date of the Lease is January I, the first installment would be payable within 30 days of January 1, and subsequent installments would be payable within 30 days of April I, July I, and October I, respectively, 1 Additional description of the fees listed here are stated in Exhibit D. Lease for Drying Basins Page 10 6/30/97 of each year during which the Lease remains in effect. The annual Lease Fee for each 12-month period shall be increased by the pcrcentage increase in the latest published Bureau of Labor Statistics Consumer Price Indexes, ALL ITEMS INDEX, for the San Francisco Bay Area. The base index shall be the index in effect on the Effective Date of the Lease. A portion of the first five annual payments shall be made to the Escrow Account cited in ~ I q above and as shown on Table 2 of Exhibit D. Funds shall be released from the Escrow Account only in the following manner. If the Lease remains in effect and neither party has informed the escrow holder in writing that the Lease has terminated in accordance with Section 2, the amount specified plus interest earned on the escrow funds in the column of Table 2 of Exhibit D entitled "Portion Released to CCCSD" shall be released to CCCSD in a lump sum within 30 days of the completion of five years from the Effective Date. If CCWD has informed the escrow holder that CCWD declared the Lease terminated by CCCSD action during the first five years from the Effective Date, the funds remaining in the Escrow Account shall be released to CCWD in a single lump sum payment. IfCCCSD has informed the escrow holder that CCWD has unilaterally terminated the Lease or that CCCSD has terminated the Lease, the funds remaining in the Escrow Account shall be released to CCCSD in a single lump sum payment. As set forth in the sample escrow instructions, the escrow holder may rely upon CCWD's or CCCSD's written information that the Lease has terminated. If, however, the Lease has not, in fact, terminated, or if it has been terminated, but not in accordance with the provisions of Section 2, the other party shall have the right to proceed against the party which has caused the escrow holder to release the funds to it for return of the funds and/or other appropriate remedies. note2 A Class II Industrial User Pennit will be required for discharge of decant to the treatment plant. The fees for receiving and processing the permit application will be actual expenses with a $500 minimum. The yearly permit has a base fee of $2,487 for FY 1997 -98. The additional costs of laboratory analysis will vary on a yearly basis depending on the sampling required. For standard, annual sampling, the minimum fee is $966 for FY 1997 -98. These fees are described in the Central Contra Costa Sanitary District Code, Title 6 "Fees and Charges," Section 6.30.060 and any amendments thereto or superceding provisions. note3 The Facilities Capacity Fee shall be payable in 9 equal annual amortized installments as set forth in Table 2, of Exhibit D within 30 days of the date that CCWO first conveys liquid flow (decant) to the effluent weir structure out of the Basins, and within 30 days of the each of the first eight anniversaries thereof, if the Lease remains in effect. noIe4 The Sewer Selvice Charge shall be billed annually by CCCSD in arrears, based on actual flow, solids and Biochemical Oxygen Demand data. CCWD shall pay this charge within 30 days of receipt ofCCCSD's bill. The amount shown in Table 3 above is based on assumptions descrihed in Exhibit D and is an estimate of the actual charges. Lease for Drying Basins Page 11 6/30/97 4. RESPONSIBILITY FOR COMPLIANCE WITH LAW Except as otherwise set forth in this lease, each district shall be responsible for its own acts and omissions and for compliance with all applicable laws with respect to its respective Wldertakings Wlder this Lease. Should one district learn or have reason to believe that a violation of such laws, statutes, ordinances, orders, and/or regulations by itself or the other district has occurred or is threatened, that district shall promptly so inform the other district. 5. EFFECT OF LEASE a. This Lease supercedes all prior oral or written representations, statements, promises, premises, negotiations, or agreements between the districts relative to the lease of CCCSD property for the drying of residuals and the acceptance for treatment of decant from the residuals. This Lease may be modified or amended only by executed written agreement of the two districts. b. This Lease is the product of negotiations between the districts with regard to which the districts have had ample opportunity to consult with their respective attorneys, and each district therefore agrees that the rule of construction that documents are construed against the drafter thereof, shall have no application to this Lease. This Lease is entered into Wlder and shall be governed by and interpreted Wlder California Law. Captions and headings in this Lease are solely for convenience in locating provisions, and they are not to be construed as limiting, expanding, or otherwise affecting the provisions of this Lease. 6. SUCCESSORS AND ASSIGNS Neither district may assign or delegate any right or obligation hereWlder without first having received the written consent duly executed of the other district. This Lease shall bind and shall inure to the benefit of any successors or assigns of either district following such consent but shall not otherwise create duties or obligations to or rights in third parties not parties to this Lease nor shall this Lease affect the legal liability of either district by imposing any standard of care different from that otherwise imposed by law. 7. NOTICES All notices or communications of any kind which either district may desire or be required to give or serve upon the other district Wlder this Lease, shall be in writing and either (i) delivered personally, or (ii) sent by facsimile transmission to the telephone numbers set forth below with the original deposited in the U.S. mail, postage pre-paid, first class, addressed as set forth below, or (iii) sent by Certified Mail, return receipt requested, postage pre-paid, first class, addressed as set forth below. Such notices shall be deemed effective upon personal delivery or transmission by telefacsimile; a notice sent only by Certified Mail shall be deemed effective upon date received as set forth in the respective receipts. Each district shall be entitled at any time to designate a different recipient, address, facsimile number, or telephone number for receipt of communications. Lease for Drying Basins Page 12 6/30/97 CONTRA COSTA WATER DISTRICT General Manager P.O. Box H20 1331 Concord Avenue Concord, CA 94524 Telephone: (510) 688-8000 Facsimile: (510) 688-8197 CENTRAL CONTRA COSTA SANITARY DISTRICT General Manager-Chief Engineer 5019 Imhoff Place Martinez, CA 94553 Telephone: (510) 229-7300 Facsimile: (510) 676-7211 8. INDEMNIFICATION a. CCWD agrees to indemnity, defend and hold CCCSD, and its officers, directors and employees harmless from any claims, actions, administrative proceedings, whether formal or informal, violation of environmental laws, judgments, damages, punitive damages, penalties, fines, costs, liabilities or losses including attorneys' fees, consultant fees and expert fees, which arise from CCWD's operations under this Lease or from CCWD's breach of its obligation(s) under this Lease. b. CCCSD agrees to indemnity, defend and hold CCWD, and its officers, directors and employees harmless from any claims, actions, administrative proceedings, whether formal or informal, violation of environmental laws, judgments, damages, punitive damages, penalties, fines, costs, liabilities or losses including attorneys' fees, consultant fees and expert fees, which arise from CCCSD's active negligence or willful misconduct in its operations on or about the CCCSD treatment plant site or from CCCSD's breach of its obligation(s) under this Lease. 9. INSURANCE a CCWD shall maintain in full force and effect at all times during the term of this Lease general liability insurance providing a minimum of $1,000,000 in combined single limit coverage (bodily injury and property damage) per accident or occurrence with a $5,000,000 annual aggregate or an equivalent self insured program, which shall cover third party personal injury and/or property damage arising out of CCWD's negligent operations under this Lease and/or out of negligence of its officers, directors, employees and agents accessing or working upon CCCSD property. CCWD shall also cause any CCWD contractor accessing CCCSD property to maintain in full force and effect general liability insurance with the above-referenced limits which shall cover personal injury and/or property damage arising out of such contractor's operations upon CCCSD property. Any such general liability insurance of CCWD and/or its contractors shall name CCCSD as an additional insured and shall contain a standard cross-liability clause or endorsement. CCWD shall provide to CCCSD evidence of such insurance coverage to CCCSD's reasonable satisfaction. b. CCWD shall maintain in full force and effect at all times during the term of this Lease, automobile liability insurance with coverage for any vehicle including those owned, leased, rented, or borrowed, or an equivalent self-insured program CCWD shall also cause any CCWD contractor accessing CCCSD property to carry such insurance. The limit amount for this insurance shall be not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage. c. CCWD shall maintain in full force and effect at all times during the term of this Lease, workers' Lease for Drying Basins Page 13 6/30/97 compensation insurance as required by law and employer's liability insurance in an amount not less than $100,000 per occurrence or an equivalent self-insurance program. CCWD shall also cause any CCWD contractor accessing CCCSD property to carry such insurance. d. Each district's respective workers' compensation insurer(s) covering each district and its officers, directors, employees, agents, consultants, and contractors shall waive all rights of subrogation against the other district and its officers, directors, employees, and agents (other than consultants and contractors). e. This section shall not be construed as a limitation of either district's liability under Section 8, "Indemnification", or otherwise under this Lease. 10. LICENSE FOR ENTRY AND EXITING SITE For the term of this Lease and for such reasonable time after the termination of this Lease as is necessary for CCWD to perform the terms of this Lease, CCWD shall have a license across the property of CCCSD depicted in Exhibit C to the extent necessary for CCWD to perform its obligations under this Lease. 11. UTILITY SERVICES CCWD agrees to supply and pay for all costs related to water, fuel, telephone, electric, sanitation, garbage and other utility services in connection with its use of the Basins. CCCSD, upon its consent to CCWD's capital improvements and equipment, will allow CCWD to install applicable materials and equipment that are necessary to obtain utilities for CCWD's use of the Basins. CCCSD shall not unreasonably withhold such consent. Should any utilities be existing and available for CCWD in connection with its use of the Basins on the Effective Date of the Lease, CCWD shall be entitled to use the utilities, but shall pay for all costs related thereto. 12. DISPUTE RESOLUTION a. Except as set forth in Section 12 (d) below, the districts shall submit any dispute under this Lease to binding arbitration. The district requesting arbitration shall serve upon the other district a written demand for arbitration that shall include a description of the specific dispute involved. Thirty (30) days after such service, the district requesting arbitration may begin the arbitrator-selection process as set forth in section 12 (b) below. b. Unless the districts othenvise agree in writing, the districts shall select an arbitrator in the following manner: each district shall submit to the other district a written list of ten natural persons, in order of preference. The district requesting arbitration shall contact the first candidate appearing on both lists and request that he or she serve as arbitrator for the dispute. Should the first joint candidate decline to serve as arbitrator, the district requesting arbitration shall contact the next joint candidate and request that he or she serve as arbitrator for the dispute. This process shall be repeated until a joint candidate agrees to serve as arbitrator or the districts agree not to submit any more lists, but shall not extend more than fifteen (15) calendar days. If the districts agree not to submit any more lists, or the fifteen calendar day period has elapsed, each Lease for Drying Basins Page 14 6/30/97 district shall prepare a list of five natural persons and the districts shall jointly petition the Contra Costa Superior Court to appoint an arbitrator from the two lists by the following procedure: said Court shall appoint such arbitrator pursuant to the terms Code of Civil Procedure 91281.6, and the first proposed arbitrator who is not disqualified lUlder the provisions of 91282 of the Code of Ci vii Procedure shall serve as arbitrator. Unless the districts otherwise agree in writing, the arbitration shall be conducted pursuant to the provisions of Chapter 3 of Title 9 of the Code of Civil Procedure (91282 et seq.) except that notwithstanding the provisions of subdivision Cd) of 91282.2 of that Code, witnesses shall be sworn, the rules of evidence shall apply, and the proceedings shall be reported unless the districts otherwise agree in writing. c. The arbitrator fee shall be divided equally between the districts, and each district shall bear its own attorney's fees and costs, unless the arbitrator finds that one district has acted in bad faith in connection with the dispute giving rise to the arbitration or the arbitration itself, in which case the arbitrator may order such district to pay the entire arbitration fee and/or a portion of all of the other district's attorneys' fees and costs, as justice requires. d. Notwithstanding any other provision of this Section 12, if CCCSD reasonably believes that a direct proximate result of a matter in dispute lUlder this Lease or the resolution thereof will be to cause CCCSD to be in non-compliance with its NPDES permit or to violate any other provision of law, such dispute shall not be submitted to binding arbitration, but may be submitted to non-binding arbitration pursuant to the procedures contained in this Section 12. Alternatively, such dispute may be resolved pursuant to ordinary procedures available at law or in equity. 13. PEACEFUL ENJOYMENT CCCSD agrees that CCWD shall have quiet enjoyment and peaceable possession of the Basins during the term of the Lease conditioned on CCWD's performance and observance of its obligations lUlder the Lease. CONTRA COSTA WATER DISTRICT CENTRAL CONTRA COSTA SANITARY DISTRICT By: Walter J. Bishop, General Manager By: Roger Dolan, General Manager-Chief Engineer APPROVED AS TO FORM: APPROVED AS TO FORM: By: Legal Counsel By: District Counsel Lease for Drying Basins Page 15 6/30/97 Exhibit A - Conceptual Design SUMMARY DESCRIPTION CONTRA COSTA WATER DISTRICT RESIDULAS DRYING BASIN RESTORA TION PROJECT AT CENTRAL CONTRA SANITARY DISTRICT The drying basin restoration project will consist of the following elements: . Use of the sedimentation basin pumps at the Bollman WTP to remove and transfer solids to drying basins at CCCSD. Use of the existing residuals transfer pipeline to feed sludge to Basins I and II. . Add a paved vehicle access ramp to Basin 2. . Stabilize (harden) approximately one acre of the bottom of Basin I and one acre of Basin II with a cement- fly ash mixture. The mixture will be tilled into the top 12 to 18 inches of the earth bottom of the basin and then rolled and compacted to forn1 a hard, durable working surface for the drying and removal of the alum sludge. . ModifY the decant structure from Basin III to include a flow meter with totalizer. (Local indication only.) . Provide water to the vehicle access ramp in Basin I to wash down equipment used to turn the drying sludge and to load the dried sludge onto the trucks for disposal. The source of water will be the pipe feeding the NaX plant, approximately 600 feet away. . Operation of the drying basins will be manually initiated, i.e., selection of basin operating sequence, setting of supernatant level, and flow of decant to CCCSD. . Decant facilities in Basins I and II will consist of submersible pumps with floating weirs powered by a portable generator provided by the District's contract operator, and will not permanently mounted pumps and hard piping. . The levee road \vill be widened to provide a turn-around area west of Basin I. Work that will be conducted on site prior to the design includes: . Geotechnical assessments and groundwater monitoring well installation. . Topographical survey. Lease for Drying Basins Page 16i 6/30/97 EXHIBIT B DRYING BASINS FACILITIES AND OPERATIONS PLAN OPERATION OF BASINS AND FACILITIES Basins are designed to collect and dry residuals to a specified solids content. They will have no underdrain system. Basins I and II would be operated in an alternating "fill and dry" mode with Basin ill used as an evaporation basin. The operation based upon five years data (1991 - 1995) would be as follows: · Filling Operation. When a "fill" basin is ready for the drying mode and the "drying" basin has been cleaned of dried sludge, raw residuals flow into the cleaned basin. Sludge concentration is approximately 2 percent. Valves at the inlet pipe at the basins would be manually opened. · Decanting. Water treatment residuals are known to spontaneously settle with clear, "free" water forming at the top of standing residuals. Without polymers to assist the settling, clarification can be as much as 1 inch per day. Excess decant water would be pumped using portable floating pumps into either the adjacent "fill" basin or Basin ill which has a capacity of3,500,000 gallons. Basin III would be used as a polishing basin for additional evaporation and settling prior to discharge into the CCCSD collection system. Any decant flow exceeding the weir level at the outlet structure of Basin III would flow into the CCCSD collection system. During the drying season, decant flow to CCCSD would be negligible. · Evaporation/&'linfall Effects. Using residuals' production data over the past four years, average montWy residuals production during the dry season is 1,135,000 gallons. Wet weather residuals production averages 713,000 gallons per month between November to February. The table below shows that amount of decant to be discharged over the year with evaporation and rainfall taken into account. The elevations in Basins I and II is the fill elevation without taking into account evaporation or rainfall. ,::ii'::'TABLEdJ@:EYAJroRATIQNkRWmFAutllEFEEP.TS::: ........................ .. .................. -.. . ............ .............................. .... ...................."............................................................................................................. CYCLE PERIOD RAINFALL EVAP NET EvAP INFLOW REMAINING (INCHES) (INCHES) (INCHES) (GALS.) (GALS.) MARCH - APRIL 4.42 7.5 3. 1 1,783,542 1,338,304 MAY - JUNE 1. 12 16.2 15.1 2,583,330 414,588 JULY - AUGUST 0.0 18.4 18.4 2,490,263 <152,442> SEPTEMBER - OCTOBER 0.73 1 1.5 10.8 2,220,396 669,243 WET WEATHER 12.02 7.82 <4.2> 2,952,376 4,092,690 MONTHS** TOTALS 12,029,907 6,362,383 DECANT WATER TO BE 3,181,200 DISPOSED (QJ 50%*" * Water loss due to evaporation is calcu lated from the fill basin (assumed to be Basin I) and Basin 11/ only at 5.3 acres. ** Water loss calculated over the entire 10 acre site. *** Assuming additional water evaporation 111 drvin/!; basin, retained water III dried sludges, and soil percolation. Exhibit B Facilities and Operating Plan Page 2 · Drying Operations. The inlet valve to the basin would be closed manually. Auger/aeration equipment (e.g. a "Brown Bear") for aerating and mixing the residuals is used to expose moist residuals to the sun and wind. At about 20 percent solids, dried residuals would breakup into clumps and the auger/aeration equipment would begin to windrow the residuals into 2-foot high rows on top of the hardened area of each basin. The windrows would be "turned" once a day, except weekends, thereafter to achieve optimal drying. At over 40 percent solids, the residuals are sufficiently dry and can be hauled to the lronhouse site. · Fill and Dry Cycles. At the beginning of the drying cycle mode, the drying basin would be pumped of any excess decant water into the adjacent basin or Basin III. The remaining residuals layer should be approximately 10 percent solids. As a rule of thumb with mechanized assisted drying, residuals concentration is doubled each 7 to 8 days (with no rain). With a "Brown Bear" attachment, solar drying 10 percent residuals to over 50 percent solids should be completed in about 30 days. With 8 months of dry weather (March 1 - October 30), the lagoons could be cycled 4 times. (Five cycles annually, including the winter cycle. ) · Wet Weather Operations. During wet weather (November 1 - March 1), residuals production over the past four years averaged 2,952,376 gallons during the 4 wet weather months. Rainfall would also accumulate at a .rate of 12.02 inches with an ~yaporation rate of 7.82 inches for a net accumulation of 4.20 inches during the four month wet weather period or 1,150,000 gallons over the basin area. As discussed previously, excess decant water would be either discharged to CCCSD or allowed to evaporate in the dry season. At the beginning of March, the basin with residuals accumulated from the previous October would be cleaned and readied for fill operation during the months of March and April. · Backwash Filter Residuals Drying. Recovery of filter backwash solids would require equalization and thickening since the filter backwash residuals are generally at '0.1 percent concentration. Filter backwash flow averaged 279 million gallons over the past 5 years. At 2 percent solids, filter backwash residuals flow is estimated at 1,160,000 gallons per month. Hydraulic and residuals loading to the basins would nearly double. Decant water would increase from 3,200,000 gallons to 13,000,000 gallons if only Basins I, II and III are utilized. Introduction offilter backwash solids would require reopening Basin B with an area of 3.34 acres. Drying operations would have to be modified to accommodate Basin B. · Residuals Hauling. Residuals hauling would be similar to current hauling operations. When the residuals are dried to over 45 percent solids, a trucking contractor would take truckloads in a trailer with 25 cubic yard maximum capacity to the Ironhouse land spreading site in Oakley. This would begin two weeks prior to the switching of the basins, and last about a week. It is estimated that approximately 120 truckloads (20 to 22 cubic yards) of solids will be off-loaded per year. BACKGROUND Use of the drying basins (basins) at the Central Contra Costa Sanitary District (CCCSD) wastewater treatment plant in Martinez is a reliable, environmentally sound, and cost effective means of reducing the volume of water treatment residuals. Drying operations would reduce Exhibit B Facilities and Operating Plan Page 3 residuals volume from approximately 60,000 cubic yards to 2,600 cubic yards annually. The lronhouse Sanitary District land application area in Oakley will be the ultimate disposal site. Estimated Residuals Production Estimates of future residuals production is based on actual production rates as observed by Karl Needham Enterprises and historical residuals data. A 20% contingency factor is included in anticipation of higher water production, population growth, improved residuals recovery, and higher raw water turbidity. Filter backwash solids are estimated by the average annual filter backwash water discharged at a solids concentration of 0.1%. .......... .... ............::':':,:,:::,:::'.:: ::::f:f:f:::f:::]fr.4.!ijJ.Ji~t2::%]!j~r~1:EQ:I$~mPAl$~RQQttgr.tQ~ ............... .... ...f:::::::: ACTUAL RESIDUALS DEWATEREDIN 1992-93 2,200 CUBIC YARDS (50% SOLIDS BY WEIGlIT) ESTIMATED FILTER BACKWASH SOLIDS 1,360 CUBIC YARDS (50% SOLIDS BY WEIGlIT) SUBTOTAL 20% CONTINGENCY TOTAL 3,560 CUBIC YARDS 712 CUBIC YARDS 4,272 CUBIC YARDS Estimated residuals production is 4,300 cubic yards/year atSO percent solids by weight. The total raw residuals flow from the sedimentation basins and filter backwash is roughly 900,000 gallons per day. This is based on an estimated filter backwash flow of279,000,000 gallons per year. Each backwash uses 280,000 gallons. The District averages three backwashes/day with a maximum of six backwashes a day. Alum residuals from the sedimentation basins is roughly 11,960,000 gallons per year at under 2% solids. Filter backwash solids thickened to 2% is ~stimated at 13,900,000 gallons per year. Concentration of2 % was used as a conservative number. RESIDUALS FILTER BACKWASH ADJUSTED TO 2% SOLIDS TOTAL 12,029,907 GALLONS 13,900,000 GALLONS 25,929,907 GALLONS EAAfIY:am/operations Plan c '" ." ...; o 0- <D ~ ./ <D <D ;:: f -----:::::::- -----:::::::::=---- ------::::::::=---- - -- ----:::::::::::--- ----:::::::::--- --- --- --- --- --- --- - -- -- ~ .. ~ .. .J.&.Zl ~ IWION <JIll!) JNV10l ]~ -- --- --- --- --- --.--" ---- -----.--" -- -- -:::.:---==- ~--=---=---.--. ___ --.--0 ---;"--'--" Ul CV :::< ~ u ::> <{ Ul ~ ... ~ ".; :::< u :::J <{ ::: ~ C'i C'i ... Ul CV ~~ ;;/.00- <Xl ~ -' .., ;0 'li ~ ,J.J ..>- U ~~W offi~ ..,20:: ......,0 ~~~ gg ~~ .-< Central Contra Costa Sanitary District EXHIBIT C N '" ,:.:. o .... en g? -' ~ c; DRYING BASINS EXHIBIT D COSTS Table 1. Fees and Charges for Leasing Land and Providing Decant Treatment This table and a discussion of the fee and charges is also included in the text of this Lease in Section 3. Addi' al 1 . f h fi d h d h b . fi h' al ul' .. I dedh tlOn explanatIOn 0 t e ees an c arges an t e aslS or t elr c catIOn IS mc u ere. I I INITIAL FEES AND FIRST YEAR'S CHARGES ANNUAL FEES AND CHARGES I 1. Lease fee(1) II $95,000 I I 2. Class II permit fee II $500 $3,355 I 3. Facilities Capacity fee(2) II $120,000 I I 4. Sewer Service Charge(3) II II $10,000 I I TOTAL II $120,500 II $108,355 I (1) This Lease Fee includes the fair market value lease fee and administrative charges for the lease of Basins I, II, and III and, as noted in Table 3, CCCSD's estimated share of the costs of the soil investigation described in Section 1 k. No charge is included for land used to store vehicles or other equipment. In the event that Basin IV is leased to CCWD, the lease fee will be prorated in proportion to the increase in the number of acres being leased, using as base the lease fee in place at the time for the lease of Basins I, II, and III. (2) To arrive at an assessment of the one-time Facilities Capacity Fee, a calculation of the Residential Unit Equivalent (RUE) flow represented by this discharger is performed. This calculation is described in Title 6, Section 6.12.050, part D and any amendments thereto or superceding provisions and is shown below: FLOe BODe TSSe RUE = X [ A + B X + C X FLOru BODru TSSru For this calculation, assumed values were FLOe = 30% of CCWD's estimated daily flow volume of residuals was used (275,000 gal/week), BODe = 30mg/L, and TSSe = 100mg/L. The values shown for constants FLOru, BODrw TSSru, A, B, and C are set by District Code and are shown in Title 6, as amended or superceded. FLOe BODe TSSe RUE = X [ 0.69 + 0.14 X + 0.17 X ] = 46.56 200 200 215 A one-time Facilities Capacity Fee will be assessed for the treatment of the decant. This cost reflects a proportional share of the value of the treatment capacity. The number of RUEs calculated as shown above Lease for Drying Basins Page 21 6/30/97 is multiplied by $2572 per RUE (Section 6.12.090, Table 6 and any amendments thereto and superceding provisions). The Facilities Capacity Fee is $120,000 which shall be payable in annual installments as previously set forth in Table 3 of Section 3. Rain falling into and evaporation from the basins will influence the quantity of decant flow which CCWD actually sends to the treatment plant, and therefore will affect the parameters used in this calculation. These components can not be quantified at this time. The facilities capacity fee may be adjusted either with an additional fee or credit based on the actual flow and strength characteristics, as determined pursuant to the "special study" provisions of Title 6 of the District Code, as amended or superceded. If CCWD leases Basin IV, an evaluation will be made to determine whether an additional Facilities Capacity Fee is owing, based upon the District Code provisions in effect at the time the lease of Basin IV becomes effective. (3) A Sewer Service Charge is assessed for all treatment plant users. Rates are set forth in Title 6, Section 6.34.010 and any amendments thereto or superceding provisions. Based on the assumption that only decant is allowed to flow to the treatment plant during either wet or dry seasons and not total residuals which would have a much higher solids concentration, costs have been determined using the standard sewer service charge calculation. Asswnptions for flow quantity, BOD, and TSS are the same as those made in the RUE calculation shown above. The peak demand flow which is used in this calculation was assumed at the normal anticipated flow of total residuals of 0.0393 MGD. The initial estimated fee is $10,000 per year. Fees are calculated on an annual basis and reflect actual flow and strength of constituents as shown in the data acquired during the prior year. No calculation has been included for the increases in residuals flow which may result from expansion of the Bollman Water Treatment Plant. The increase in the Sewer Service Charge would be in direct proportion to the increase in decant flow, not increases in residuals piped to the drying basins. Lease for Drying Basins Page 22 6/30/97 :<: ~ 8 ~ ~ ~ ..~ ~~ ~! 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CD .Q 8. .~ Gl ~~ i = ~ Gl ~ ~ -g Ul :g .5 ~~ i; c ~ ~ JE-Ul :g~ "5l Gl ~.e~ Q)!c i- . E .t: 't:JO:::u; 0'2 f! "'0 I- ~ ::J ii u - ~~&lo:~~ I u ~ .- j.~ .5 '0 c jc~ I) 1l8:s~~~ ::J :S en .!!! J~ 8 .it' j ll1iiO~:<=@ .... Gl ~ u 1)='Slllu e c III 0=1 ~ Sl'e;; ~~o -u III III ::J ~ ~ 8:- 't:J!!:'6iu 1Il .t: 0 .9!"5l 8~t = I) "1Ilt:- co ~ 'J !!Gl1S...J::JOl iii B Sl'\;j 0 -'=::::J UQ.. '\;j .~ .8~ Gl ~ Gl ~.5 en ["ii58e "5l Gl ~B = ~[g> u :'6-g...0.8C) en .t: 8 ~ c .. OGl= $cl",_= I E Ul 0 '0 en = ~ .<:'iicli'jE g> 1;j 0 ,g! c ~S:Jl :S -"CG)C Q) E '5 .!!! i"JQij~r; III en ~:l Ii !I!. '" ~ CD C E iJCDll~:S = 1Il.t: g ::J ::J ::J Ul -....co II> [ I) U 0 0 '0 c"'O -;; i ~Il II> ~:S~ll- Ii ~ Ol "01) 0 N C l! II> ~~€:si~ ;; 0 Sl g. ~ ~ "'0= C "" E '0 Cl. ~'O.i IU ",.Ill ~u 'C III Ul " Gl.- 0 ~ '8 Ill! 1J I ~ J ~ .....t: c if!Cl "'0 .~ I- ~ c .!!! !:[ j ~~~j:si ~ t! =~ 0 = &. E U ~ Gl .t: "5l -g II Q. J i Ul ~ E :Jl '5~~~.QE III E c E ~ 8 Gl e a:: go,: R ~ 0 E III :c Sl 8 Sl .... ::J Gl i!31= .g> ".s! t.s!..Q I!! III II 0 ~ o I) I).s- !i l! U (1)"'(f;' I) .ce el).8 0 -Sl .. E=~ :S ~:;::c=~= 'u E CIl III :c ~ OGl"'O ..t8t",'i III .t: Gl zti~ a; IL c( I-...J I- .!~ CD.c ~ € '0 ~ 001- - fi Co '" Z EXHIBIT E SAMPLE JOINT ESCROW INSTRUCTIONS TO: (Name of Escrow Holder) YOUR ESCROW NO. This letter constitutes joint escrow instructions of Central Contra Costa Sanitary District, (CCCSD/Lessor) and Contra Costa Water District (CCWD/Lessee), as follows: 1. You are first to determine from CCWD/Lessee or CCCSD/Lessor whether the Lease between CCCSD/ Lessor and CCWD/Lessee for Drying Basins has terminated, as follows: a. If CCWD/ Lessee informs you in writing on or before (5 years from the Effective Date) that CCWD/ Lessee has declared the Lease terminated by CCCSD/ Lessor action, you are to pay the balance remaining in the escrow account to CCWD/ Lessee. You may rely upon CCWD/ Lessor's written informatio.1 as described above in making such payment. You are to bill CCWD/ Lessee for any escrow fees which are owing. b. If CCCSD/ Lessor informs you in writing at any time that CCWD/ Lessee has unilaterally terminated the Lease or that CCCSD/ Lessor has terminated the Lease, you shall pay the balance remaining in the escrow accOlmt to CCCSD/ Lessor. You may rely upon CCCSD/ Lessor's written information as described above in rnaking such payment. You are to bill CCWD/ Lessee for any escrow fees which are owing. 2. If neither CCCSD/ Lessor nor CCWD/ Lessee has informed you in writing before _ (5 years from the Effective Date) that the Lease has terminated, you are to pay the balance of the funds remaining in the escrow account to CCCSD/ Lessor. You are to bill CCWD/ Lessee for any escrow fees \vhich are owmg. 3. Unless otherwise instructed via supplemental written joint escrow instructions of CCWD/Lessee and CCCSD/Lessor, you are to hold all escrow funds, to the extent practicable, in certificates of deposit of maturity of no less than 180 days. 4. Except for any notice required lmder applicable law to be given in another manner, any notice given to the escrow holder shall be in writing, signed by the party giving notice and sent by certified or registered mail, return receipt requested, postage prepaid, to the escrow holder at the last address provided to the parties by the escrow holder. Notices shall be deemed eJTective upon date received as set forth in the receipt. All notices required to be given by one party to the other under the Lease, shall also be given to the escrow holder. Lease for Drying Basins Page 24 6/30/97