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Home My WebLink About01/29/2004 AGENDA BACKUPCentral Contra Costa Say ..,ary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: January 29, 2004 No.: 3.a. OPERATIONS Type of Action: ACCEPTANCE OF REPORTS subject: BOARD ACCEPTANCE OF THE 2003 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM, COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM, AND THE RECYCLED WATER QUALITY AND DISTRIBUTION REPORTS Submitted By: Initiating Dept. /Div.: Bhupinder S. Dhaliwal, Operations /Plant Operations Laboratory Superintendent REVIEWED AND RECOMMENDED FOR BOARD ACTION. 3.5D B. Dhaliwal .Craig Yi. Pearl A. Farrell Kelly ;,,, a es 1 General Mana< ISSUE: The Central Contra Costa Sanitary District's (District) 2003 National Pollutant Discharge Elimination System ( NPDES), Collection System Overflow Monitoring Program, and the Recycled Water Quality and Distribution Reports have been prepared for submission to the California Regional Water Quality Control Board (RWQCB), San Francisco Bay Section. These annual reports are presented for Board of Directors' information and acceptance. RECOMMENDATION: Accept the 2003 National Pollutant Discharge Elimination System, Collection System Overflow Monitoring Program, and Recycled Water Quality and Distribution Reports. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: None BACKGROUND: Treatment Plant -- During 2003, the treatment plant received a total of 16,306 million gallons of wastewater, which equated to, an average flow of 44.7 million gallons per day. This average flow is about 1 percent higher than in 2002. The treatment plant produced an effluent with annual average carbonaceous biochemical oxygen demand (C -BOD) and total- suspended solids (TSS) concentrations of 6 and 8 mg /L, respectively. These concentrations are markedly lower than our NPDES permit standards of 25 and 30 mg /L, respectively. C -BOD and TSS removal efficiency for the treatment plant averaged 97 and 96 percent, respectively. Solids disposal during the year involved the incineration of dewatered sludge in the District's multiple -hearth furnaces. S:\Laboratory\AnnualRpt- 2003\Pos Paper.doc Page 1 of 2 1/15/04 9:57 AM POSITION PAPER Board Meeting Date: January 29, 2004 Subject BOARD ACCEPTANCE OF THE 2003 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM, COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM, AND THE RECYCLED WATER QUALITY AND DISTRIBUTION REPORTS Approximately 5,451 tons of furnace ash was produced. The ash met regulatory requirements for final disposal throughout the year. More than 15,000 NPDES permit- required tests were completed to comply with the NPDES permit requirements. The treatment plant effluent met all (100 percent) of the permit requirements throughout the year. The District's NPDES permit requires an annual update of the District's operation and maintenance procedures. A description of the updates is also included in the annual report. Collection System -- There were 25 reportable collection system overflows (overflows exceeding 100 gallons in volume), compared to 39 for the previous year. Only 2 of the 25 overflows exceeded 1,000 gallons in volume and were the subject of separate written reports submitted to the RWQCB. Most of the overflows were due to root growth, grease deposition, and other blockages in the pipes. Further details on the overflows can be found in the attached reports. Recycled Water Quality and Distribution — The District distributed about 160 million gallons of tertiary recycled water to various customers in the District's service area. Recycled water quality met all applicable RWQCB reuse water - quality requirements, except for two low dissolved oxygen occurrences. Submittal to the RWQCB -- Upon acceptance of these reports by the District Board of Directors, the reports will be submitted to the RWQCB; the NPDES permit requires the submittal to be to the RWQCB by January 31, 2004. RECOMMENDED BOARD ACTION: Accept the 2003 National Pollutant Discharge Elimination System, Collection System Overflow Monitoring Program, and Recycled Water Quality and Distribution Reports. S: \Laboratory\AnnualRpt- 2003 \Pos Paper.doc Page 2 of 2 1/15/04 9:57 AM RWQCB ANNUAL REPORT Douglas J. Craig Board Meeting January 29, 2004 RWQCB ANNUAL REPORT PURPOSE • Summary of Calendar Year Performance • Compiles Data for 12 Monthly Reports • In Essence "Our Report Card" to RWQCB 1 RWQCB ANNUAL REPORT * Total Flow Treated = 16.3 Billion Gallons • Average Daily Peak Hourly Flow • Ash Disposal = 44.7 Million Gallons = 119 Million Gallons = 5,438 Tons (wet weight) (for soil amendment) RWQCB ANNUAL REPORT TREATMENT PLANT / RECEIVING WATER • Completed 15,300 Analytical Tests • Approximately 11,000 Hours of Laboratory Work • 100 Percent Compliance With NPDES Permit Requirements N RWQCB ANNUAL REPORT COLLECTION SYSTEM OVERFLOWS • 25 Total Sewer Overflows • 2 Overflows Greater Than 1,000 Gallons Causes: No. of Overflows Root Intrusion 16 Grease 4 Debris 4 Broken Pipe 1 RWQCB ANNUAL REPORT RECYCLED WATER • 17 Major Recycled Water Customers • 160 Million Gallons Recycled Water Delivered • Peak Month Usage — 36.6 Million Gallons in July 3 RWQCB ANNUAL REPORT Special Studies Required By New Permit SPECIAL STUDIES RESPONSIBILITY PURPOSE STATUS Ambient Monitoring Joint BACWA Study 126 Priority 4 sampling Study Pollutants events completed. Final report is Copper, Nickel De- Joint Multiple Agencies De -list Copper and expected in listing Effort Study Nickel for the RWQCB May, 2004. Cyanide Site - Specific Joint BACWA Study Develop Final report Study site - specific submitted to Criteria the RWQCB (local limit) Dioxins Method BACWA Lab Detection and On -going Development Study Committee Reporting Issues Increased emphasis on CCCSD Mandatory On -going Pollution Prevention and Emphasis Minimization RWQCB ANNUAL REPORT Special Studies Required By New Permit (Continued) SPECIAL STUDIES RESPONSIBILITY PURPOSE STATUS TMDLs Joint Multiple Agencies Define and Apportion Hg TMDL completed Study Bay Loadings PCB TMDL completed Pesticide TMDL for creeks near completion Copper, Nickel De- Joint Multiple Agencies De -list Copper and Completed listing Effort Study Nickel for the RWQCB 303(d) List RWQCB ANNUAL REPORT ACKNOWLEDGEMENTS RWQCB ANNUAL REPORT RECOMMENDATION Accept the 2003 Regional Water Quality Control Board Annual Report 5 Central Contra Costa Sanitary District Board Workshop Board Financial Planning and Policy Workshop For the 2004 -2005 Budget Process January 29, 2004 District Focuses on Budget The Perfect Storm Hopefully Smooth Sailing • Weathering the "Perfect Storm" • Not as bad as predicted • Responsible rates • Retained ad valorem tax revenue • Adequate funds • General economic upturn • Long -term labor agreement • Near -term savings • Capital Improvement Budget Purpose of Today's Workshop • Review methodology • Provide updated financial information • Review impacts of Workshop scenarios • Receive Board direction: . Maintain 2004 -2005 Capital Improvement Budget • Maintain "near- term" operational expense controls Anticipate -10% loss of ad valorem tax revenue . 2004 -2005 Sewer Service Charge increase of 3%($8) 2 Proposed Future Actions by Staff • Plan to implement the 3% Sewer Service Charge rate increase for next three fiscal years • Complete District budgeting process • Finalize District O&M and Capital Improvement Budgets • Continue "near term" actions to control costs • Provide timely budget information to the City of Concord • Proceed with District rate setting process • Mail Prop. 218 notice to property owners • Provide notice for public input and hearing • Consider future impacts of loss of tax revenue . Consider impacts of tax loss in 2005 -2006 budget process Methodology Funds Available /Funds Required Model • The District needs working capital during the year to pay its bills! • Conceptual model introduced in 1999 Board Workshop • Staff approach is to create "soft landing" • Retention of ad valorem tax revenue and bond funding for San Ramon augments Sewer Construction Fund • Sewer Construction Fund will allow for future rate adjustments as needed 3 Funds Required Assumptions • State will take part of ad valorem tax revenue from District • The full extent of the loss will not be known until after time for Prop. 218 notice • The Board does not want to increase SSC rates before need is evident • Current Fund balances will carry District through next fiscal year after tax is lost 4 Funds Available By Month if we Started with $30 million sts.000.000 sw,000.000 s�s.000aao su.000,000 ' ': . m.eoo.aao • fto,aoo.000 w fYJA00AOO � sto.000.000 w.000.000 • s � � @ ¢ 'e 'e a Q�•e e � & e & � ¢ a a e a e 5 5 S S S S S S S� S S S S 5 5� b S sro.aoo,00ui Assumptions • State will take part of ad valorem tax revenue from District • The full extent of the loss will not be known until after time for Prop. 218 notice • The Board does not want to increase SSC rates before need is evident • Current Fund balances will carry District through next fiscal year after tax is lost 4 Funds Available- 2000 to 2004 Beginning balance Bond funding Ad valorem tax CIB savings "near term" savings Unknowns Why the District may need future funds • Political Uncertainty ■ State budget, fees, special districts, counties, etc. • Economic Uncertainty ■ Benefits cost, connections, utility costs, inflation • Infrastructure Replacement ■ Third party lawsuits, facility assessments, etc. • Regulatory Uncertainty ■ TMDLs, CMOM, solids handling, etc. • Acts of God ■ Fire, floods, earthquake, slides W District Expense 2102490 TOTAL DISTRICT EXPENSES JOSAA AND CAPITAL) BY ACTIMATY OM - $37.5 KILLION: CAPITAL -=6 KILLION: BOND DEBT SERVICE. SU KILLION TOTAL DISTRICT- MILK KILLION CmjI-, FbCVd0dW—"*M E-- 01M 10M 640% C.H.W. Aftnstrobw ►l*•• 13036 76816 HAW O&M, R•-,Clod M20 CdI.M. S"— O&M 1120% T..W.W PI.M " LIM 7-M Baq — & N-P. 503% CSpdd ExpwWd B~ --4wAg*NW— T—t—t A O&M 75.886 District Expenses by Category 2000-2004 COMPARISON BY TYPE AND YEAR MOM= $15.OMJOM S5,0m.000 MIMI mm--n Elm mun IS 2MI.20D2 Aa 0 2W2.2M3 Aaa 0201117001 A* a 2ODC2OD5 Rq� A District Revenue 2012-21105 TOTAL DISTRICT REVENUE ($65.0 MILLION) IL DEPOSIT TO RESERVE(S2.1 MILLION) (NET $62.9 MILLION) DEPOSIT TO RESERVES 1ft..W10tNr 7% T. Raw nom ,7�•`j/ }�.rr+; � 13 % Concord 099991 Ctrrq.s :% fir' Cmd.I Fsss S_., S —oc. Crurgss 59% 9% Concord S.— Cnr9as 9% Capital Expenses IS Board CIB Workshop held in October; second Budget Workshop to be held in April IS Recommended baseline of $21 M per year . (January 2000 dollars @ 3% inflation) IS CIB to follow "no loss of revenue" projections • CIB for 2003 -04 will be under -spent IS CIB for 2004 -05 budgeted at $26.6 million IS Sewer Construction Fund as short term relief if ad valorem tax revenue is lost 7 Scenarios Impact for fiscal years beyond 2004 -2005 • Scenario 1: Prior Workshop (loss of tax) . Projected $32 SSC rate increase in 2004 -2005 • Scenario 2: Prior Year with no tax loss • Scenario 3: Retain all of tax revenue — 3% rate increase for 3 years • Scenario 4: Lose tax in 2005 -06 and recover with one year rate increase • Scenario 5: Lose tax in 2004 -05 and recover with two year rate increase Scenario 1 - Prior Workshop Staff Recommendation Funds Available SWCOO �i ci F ssooW $40.000 7001- 7007 7001 -2007 2003 200d 7000.]005 7005-2006 10067007 2007.1008 70061009 2W9.211O 20162111 V.. 7- --7..1 Funds A,M OW +- -I; Funds R—O– . fXI.OW SIC .000 S' • • Scenario 1 - Prior Workshop (2003) • Immediate loss of property tax revenue • Modest increase in O &M spending • Curtailment in Capital spending • Required —$32 SSC increase for 3 years • Create "soft landing" in 2007 -2008 • Capital spending, CIP, does not recover from tax loss Scenario 2- Scenario 1 rates with no loss of ad valorem tax revenue Funds Av Wabk sim.mo f sua,ma f�A.mO f1m,000 3 E M.M. s feopna .... .. MAD fm.ms L mm.mm 2003.7004 70D�2005 masmm sow.mm 2007.70e 200s2009 mocsoio 2010.7011 soii.mia r.. ....TWifines FV.IWk• •T—rum R—d iJ Scenario 2- No property tax loss • Uses 2003 Workshop SSC rates • Uses current O&M projected spending n Includes $1.6 M Paulsen payment • Uses current CIP outlined in October • Never creates a "soft landing" with funds reaching $100 M in 2007-2008 Scenario 3 -No loss of ad valorem tax revenue - 3% rate increase Fwds Avaibbl. $70.= $60.000 $50.000 M,0,0 SMODO $'O.= MW.20M 2�2� 2�2M 2WS2006 20D&2W? "�2� 21W211 IM2011 1011,"11 wr ....... TcMPind6A10WW- 4"P-ftR�1 10 Scenario 3- Rates adjusted by 3% • District does not lose property tax • Requires a 3% rate increase for 3 years • Uses current O&M projected spending • Uses current CIP outlined in October • Could absorb a 10% loss of tax revenue • Could project 3% SSC rate increase beyond 3 years • Creates "soft landing" in 2009-2010 Scenario 4- Lose ad valorem tax revenue in 2005-2006 and recover revenue in 2006-2007 Funds Avaltable $70.ODO .............................. ................................................................................... $50.000 $40.000 $30.00D w S20.0 SiG.ODD --------- ---- 2002-2003 7003 -70W 200-2005 2006-2006 70067007 2007-2008 7008-1009 2009-2010 20142011 2011-2012 Y.. 11 Scenario 4- Tax loss in 2005-2006 • Use current O&M projected spending • Uses CIP from October Workshop • Projects loss of tax revenue in 2005- 06 • Projects a one time $59 SSC increase in 2006-07 to balance revenue • Modest increases for next 3 years • `Soft landing" in 2008-09 Scenario 5- Lose ad valorem tax revenue in 2004-2005 and recover revenue over two years Funds Avallabl. $70.000 ...... ... ... ... ....... $60.000 $50.000 $40.000 $30.000 $10.ODO 2002-2= 3ws2ooa 2W. -zoos 2WS-2W6 2oos2M 7007.7006 7DWxooc Ma2010 2010-2011 N-2012 V.. – — - - — — — — -- •I.. I— R-- 12 Scenario 5 - Tax loss in 2004 -2005 • Uses projected O &M and CIP spending • Tax lost one year earlier- 2004 -05 • Requires $30 annually for 3 years to balance revenue • Large SSC increases after 3 year period • Creates no "soft landing" for District Current Ad Valorem Tax Proposal • Projected 2004 -2005 revenue is $9 M • The State believes that "enterprise" districts should not receive tax funding • If tax is lost, equivalent to a $59 SSC increase • Current proposal "$1.3 billion shift of local government property taxes to the ERAF... or a decrease... of about 10 %." 13 Staff Recommendation • Implement a 3% SSC increase annually for 2004 -05, 2005 -06, and 2006 -07 • Provide Prop. 218 notice • Implement current CIB based on continued ad valorem tax revenue • Continue many of the "near term" measures in O &M budget • Anticipate loss of future tax revenues Impact on Sewer Service Charge Still below median for local agencies 14 .....!BIG:::. .......................................................................................... Livermore ............................... $451 eo.San". Dlf A ....................... ............................... ....5143....................... Benlda $428 Berkeley ( EBMUD for teafinerrt) .......................................................................................... $402 ............................... Vallejo $390 CroCkeil- Vallona_SonNary Dliid ............ ............................... $381....................... Pleasanton $378 EBMUD 5347 ............................... .......................................................................................... Oaldand ( EBMUD lorteahnent) $330 Dublin -San Ramon Senrlces Ushlcf .................................................._........_........._.__............ $327 ............................... Mt. View Sanitary District $324 tiren ood ............................. ............................... . .............. ......$31M ...................... PHbburg (DDSD for treatment) $290 Stepe Sanitary District(EBMUD for treatment) .......................................................................................... $277 ............................... Napa Sanitation District $274 C, 10 - $272 Anfoeh (DDSD for treahnenQ ............. ............................... .....5259...................... Ray ►dnt (DDSD for kwhn enf) ......................... ......................5257..... _. _............. Concord CCCSD►orheatnenf ...5234 ...................... FolrWd- Sulsun $229 Unlon Saniary. WHO ............... ............................... .......... 5197....................... We* County Wastewater Dlstid $150 Oro Loma Sanitary di( cl .................. ............................... .....5135...................... 14 Future Actions • Proceed with development of District budgets based on Board input • Update Board on State budget developments that impact the District • Develop and mail Prop. 218 notices • Provide rate and budget information in spring issue of Pipeline • Develop appropriate rate setting process A danger foreseen is half avoided. ... Thomas Fuller Budget plan shocks counties Contra Costa would lose about $33 million in property taxes next year... Contra Costa Times, Jan. 11, 2004 " We're very disappointed," Megan Taylor, spokeswoman for the League of California Cities, said. "The governor said he would terminate business as usual, but robbing from local governments is business as usual." 15 Board Discussion Questions ? 16