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Home My WebLink About1/27/2005 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: January 27, 2005 No.: 5.a. OPERATIONS Type of Action: ACCEPTANCE OF REPORTS subject: BOARD ACCEPTANCE OF THE 2004 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM AND COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM REPORTS Submitted By: Initiating Dept /Div.: Bhupinder S. Dhaliwal, Operations /Plant Operations Laboratory Superintendent REVIEWED AND RECOMMENDED FOR BOARD ACTION: `3s � d B. Dhaliwal Craig J. Pearl J. Kelly ar s a General M n er ISSUE: The Central Contra Costa Sanitary District's (District) 2004 National Pollutant Discharge Elimination System ( NPDES) and Collection System Overflow Monitoring Program 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 2004 National Pollutant Discharge Elimination System and Collection System Overflow Monitoring Program Reports. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: None BACKGROUND: Treatment Plant -- During 2004 the treatment plant received a total of 16,397 million gallons of wastewater, which equated to an average flow of 44.8 million gallons per day. This average flow is about 0.2 percent higher than in 2003. 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- 2004 \Pos Paper.doc Page 1 of 2 1/18/05 3:54 PM POSITION PAPER Board Meeting Date: January 27, 2005 Subject BOARD ACCEPTANCE OF THE 2003 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM AND COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM REPORTS Approximately 5,307 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, which makes this the seventh consecutive year of full compliance. 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 27 reportable collection system overflows (overflows exceeding 100 gallons in volume), compared to 25 for the previous year. Only 6 of the 27 overflows exceeded 1,000 gallons in volume and were the subject of separate written reports submitted to the RWQCB. Most of the 27 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. 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 February 1, 2005. RECOMMENDED BOARD ACTION: Accept the 2004 National Pollutant Discharge Elimination System and Collection System Overflow Monitoring Program Reports. S: \Laboratory\AnnuaIRpt- 2004 \Pos Paper.doc Page 2 of 2 1/18/05 3:37 PM Central Contra Costa saattery District Board Workshop Board Financial Planning and Policy Workshop For the 3005-06 Budget Progss Jammn 27, 2000 Board tiaNMrd Purpose of Presentation d Review Sewer Service Charge Increase scenario �r Respond to Board Input 0 Receive Board direction: • 2005 06 Sewer Service Charge • Consider adjustments to District fees and charges v Update Board on ad valorem tax revenue Issues Incorporate Board concerns and develop budgets "The sun will come out tomorrow" I -�--7 ICS 1 Why Sunshine Z A.- Excellent workforce ❖Smooth transition of organization -.1- Exceptional regulatory record ❖Long-term labor contracts ❖Developing local partnerships ❖Reasonable rates and fees ❖Adequate reserves ❖Retained property tax revenue Some clouds Z ❖Maintain being "employer of choice" • Reputation of District • Competitive salary and benefits ❖Impact of "State budget crisis" • Impact on Special Districts ❖Economic recovery • Rising tide ❖Regulation • Costs of future regulatory Impacts Board Philosophy -,*e District Goals: • Full regulatory compliance • Exceptional customer service • Responsible rates • Cost effective organization • Modest annual Incroases • Reliable infrastructure • "Pay as you go' approach • Adequate resorm • High Performance Organization 2 Funds Available /Funds Required Model ❖Conceptual model of "funds required" introduced in 1999 Board Workshop ❖District "funds available' should never be less than "funds required'; and are not the same as "reserves' ❖Staff approach to create "soft landing" Is short -term rate stabilization What should "funds required" be? Funds Required •The definition of "funds required' Is the minimum amount of reserves not to require annual borrowing *"Funds Required in rate scenarios has been $30 to $35 million Funds Available • "Funds available' have recently been augmented by near -term savings, property tax revenue, and bond financing • "Funds available' are now $61 million District Reserve Policy • Existing 'Reserve Policy" • 10% of Total O&M Budget • 100% of next years debt service • 75% of next years capital budget • selfansurance contribution •There may be business reasons to Increase reserves: • Board policy on O&M reserve • Prepayment of retiree bensflts • Self Insurance liability • Large future capital expenditures • Anticipated debt service 3 District Reserve Policy •SGASB 45 • Fund 'Post-retirement" benefits • Focused on healthcare • Initial estimate $5 million • Need actuarial study • Future concern over 'unfunded' liabilities • Pension fund • Self- Insurance Projected draw down of reserves Assumptions - 2005 ❖State will take most of the ad valorem tax revenue from District for two years ❖The three -year Board approved Sewer Service Charge increase is still appropriate d•Staff s goal of a "soft landing" results In rate stabilization ❖Prudent use of District reserves is preserved ❖The Board does not want to Increase SSC rates before need is evident 4 Ad Valorem Tax Proposal *eThe State believes that "enterprise" districts should not receive tax funding ❖Proposition 1A - "$i3 billion shift of local government property taxes to the ERAF.. " ❖The 2004 -05 tax revenue is - $9 million and the State took $5.7 million 4-The future of property tax could get interesting 200405 O &M Expenses Total $42.7 MNNon w •• w M w OYrrs w w O &M Expenses ❖Labor and benefits - 66 %, focus of near -term savings • Labor- Long -term maintenance requirements • Benefits - Healthcare, pension funds ❖Utilities & Chemicals - M, long -term conservation efforts • Energy - Long -term NG cost projections • Repairs & Maintenance - Increasing age of system �i 2004 -05 Projected Total District Revenue (*".2 Million) i Draw from Reserve ($6A Milli") (Total of $73.2 MI) District Revenue ❖Change in dynamics - 7% drawn from reserves ❖Sewer Service Charge - 59 %, not just for O &M anymore ❖Capital fees - 9 %, with Dougherty Valley construction ❖Concord - 13 %, CMOM driven ❖InteresVOther - 7 %, Reserve amount and interest rate equation 0 Capital Expenses •r Based on Board CIB Workshop held in November, future workshop in April •S Future Infrastructure spending will Increase s Capital spending is realistic, If not conservative based on asset management principles •'r CIB for 2002 -03, 2003-04 were under-spent :• CIB for 2005-06 budgeted at $27.3 million v Only part of the Sewer Construction Fund can be use to augment rates Scenarios - Impact for fiscal years beyond 200405 ❖Scenario 1: Prior Year's Scenario - no loss of tax revenue - 3% rate Increase for 3 years ❖Scenario 2: Recommended Scenario Last year's adopted scenario - 3% ($8) rate increase with $5.7 million in tax revenue loss and updated expenses ❖Scenario 3: Worst Case - $60 rate increase in 2007 -08 to compensate for full tax revenue loss in future Scenario 1- Last Year's Rates adjusted by 3% -,'e District loses no property tax ❖Projects a 3% rate Increase for 3 years d•Used Capital and 0 &M projected spending • Includes $L6 M Paulsen payment ❖Uses current CIP outlined in October 2003 4-Could project 3% SSC rate increase beyond 3 years ❖Creates "hard landing" in 2009 -10 7 Scenario 1- Last Year's Rate adjusted by 3% Y-------------- 3700fD 300 3951 M 30 M W Scenario 2 - Recommended Based on the adopted resolution •:- District loses 65% of property tax 4- Projects a 3% rate Increase for 3 years *eUses current Capital and 0 &M projected spending - Includes $5 m retiree benefits trust fund -Uses current CIP outlined in November 2004 -: Could project 3% SSC rate increase beyond 3 years ❖Creates "hard landing" in 2012 -13 Scenario 2 - Last year's adopted rates with loss of property tax revenue for 2 years wrti�r� wiM- rays. _ Sfe 39m 10 Scenario S - Worst Case ❖Based on "Recommended Scenario' with State taking full property tax revenue in 2007 -08 ❖Projects a $60 rate increase to compensate for tax loss ❖Uses Capital and O &M projected spending from "Recommended Scenario" ❖Uses current CIP outlined In November 2004 ❖Creates "hard landing" in 201243 Scenario S - Worst Case ------- - - - - -- Staff Recommendation ❖Implement a 3 %SSC rate increase for 2005 -06 ❖Consider annual rate adjustments to District fees and charges ❖Consider District "Reserve Policy" ❖Implement current CIB based on long term Capital Improvement Plan :•Anticipate possible loss of future tax revenues E Impact on Sewer Service Charge 51JU below n»dlan for local agencies P-4"d AMWV a 2006 Agency SeC Connection Fee lAenrow 451 9,250 FOd-11erW7 DMM 447 89nb19 4M 7.500 Bebby EWMW br U..b..M 402 VdtljO 751 tA75 CmM9 Mwft 8D 771 /,7M PIw�11on 777 lo.Mo EUMM7 347 OYa11rid EBMl0 b11WmMq 770 Dub9n 89n Fnnon BD 727 11.050 M. VMw 80 710 7,555 PMFGFp PM01 2M 4.675 00068 >p 7.1110 F" 8D 6,10o IV11Fd1(DD8D) 710 4$3 8.7 ft" p0801 254 9,775 N1W0 202 4.100 00imd (00080 b InM91e1) 284 7.816 F&VNM Wi 229 8.843 '*dm so 705 2AM 2V11111 0—" W.p9wFNr Owdo 170 1,1011 OA loon 8o 157 8,067 N—r Mw hl wb, Y 2006 nd da- .I..IyO��M b9MMb900610 Future Actions •SAffirm adopted 3% Sewer Service Charge Increase ❖Proceed with development of District budgets based on Board input ❖Update Board on State budget developments that may impact the District •S Provide rate and budget information in spring issue of Pipeline -*e Develop appropriate process for adjusting District fees and charges 7Te far the worst eftsa eves tbo wover - ibakeepeerS, Trolls' asd creeems Last year, we stopped the bleeding. This year, we must begin to heal the patient. Arnold schvvar:eno"w, January 100 messpe to the L.ealsletwe of California 10 Board Discussion Questions Z 11 Ad Valorem Tax Proposal ❖The State believes that "enterprise" districts should not receive tax funding ❖Proposition 1A - "$1.3 billion shift of local government property taxes to the ERAF..." ❖The 200405 tax revenue is - $9 million and the State took $5.7 million ❖The future of property tax could get Interesting O &M Expenses ❖Labor and benefits - 66 %, focus of near -term savings • Labor- Long -term maintenance requirements • Benefits - Healthcare, pension funds ❖Utilities & Chemicals - 13 %, long -term conservation efforts • Energy - Long -term NG cost projections • Repairs & Maintenance - Increasing age of system �1�71as �.Q. k District Revenue ^#.-Change|n dynamics -7Y6 drawn from reserves 4+Sowo, Service Charge - 53Y6. not just for O&M anymore 4-Capita| fees -9Y6. with Dougherty Valley construction `*.-Oonxuni-1396.CMOK0driven `#.*|ntevost/Ouher-7Y6. Reserve amount and Interest rate equation Total District Revenue & Expense � = Capital Expenses •:•Based on Board CIB Workshop held in November, future workshop in April Future Infrastructure spending will increase ❖Capital spending is realistic, if not conservative based on asset management principles ❖CIB for 2002 -03, 2003 -04 were under -spent ❖CIB for 2005 -06 budgeted at $27.3 million -*-Only part of the Sewer Construction Fund can be use to augment rates Scenarios - Impact for fiscal years beyond 2004 -05 Scenario 1: Prior Year's Scenario - no loss of tax revenue - 3% rate Increase for 3 years ❖Scenario 2: Recommended Scenario Last year's adopted scenario - 3% ($8) rate increase with $5.7 million in tax revenue loss and updated expenses ❖Scenario 3: Worst Case - $60 rate Increase in 2007 -08 to compensate for full tax revenue loss in future Scenario 1 - Last Year's Rates adjusted by 3% ❖District loses no property tax •SProjects a 3% rate increase for 3 years ❖Used Capital and 0 &M projected spending • Includes $16 M Paulsen payment ❖Uses current CIP outlined in October 2003 ❖Could project 3% SSC rate increase beyond 3 years Z•Creates "hard landing" in 2011 -12 7 Scenario 1- Last Year's Rate adjusted by 3% Scenario 2 - Recommended Based on the adopted resolution ❖District loses 65% of property tax Projects a 3% rate increase for 3 years ❖Uses current Capital and 0 &M projected spending • Includes $5 m retiree benefits trust fund ❖Uses current CIP outlined in November 2004 ❖Could project 3% SSC rate increase beyond 3 years ❖Creates "hard landing" in 2012 -13 Scenario 2 - Last year's adopted rates with loss of property tax revenue for 2 years I .hrY. f, 1 I , It k sfee -orWt« 7981 39W k + �`I Scenario 3 - Worst Case ❖Based on "Recommended Scenario" with State taking full property tax revenue in 2007 -08 ❖Projects a $60 rate increase to compensate for tax loss ❖Uses Capital and 0 &M projected spending from "Recommended Scenario" ❖Uses current CIP outlined in November 2004 ❖Creates "hard landing" in 2012 -13 Scenario 3 - Worst Case 1 .. Staff Recommendation ❖Implement a 3 %SSC rate increase for 2005 -06 ❖Consider annual rate adjustments to District fees and charges ❖Consider District "Reserve Policy" •: Implement current CIB based on long term Capital Improvement Plan ❖Anticipate possible loss of future tax revenues Impact on Sewer Service Charge Still below median for local agencies R—d JM 6, 3006 A .ncy SSC C..... ion F.. Lk.-- 151 9,350 RoOeo $arilay Dislncl !!J - BaMCW 436 "W. Bak.lry (EBMIA bi I......1) !03 Vaiajo Jet 1875 CrockNl -V alala SD 381 1,161 Pb.a".on 378 10100 EBMUD 3!7 O.W.nJ IEBMUD for Irmlmarl) 3J0 Or V Srn Ramon 9O MI. V 337 336 1 1 050 7 566 PNI W 1.9 (DDSD) (D 393 4,975 COGD.. t&.. SO 371 5880 11MI1 (DOSO) 366 4,335 ON Pwn (DDSD) 2" 3,375 NAMO 383 1,950 C—d (=SD br -M—) 331 3.616 Fa .$W.rn 339 5,613 U— So 305 3,816 W.N Covey We..— Oislrid 170 1,966 Oro Loma SD 153 8,057 .a race eae Isea.e w`.irN.n �e�,�ery avcs eae eo aol�el «l arry ow.,ee �u a "n a. za>s -n Future Actions ❖Affirm adopted 3% Sewer Service Charge Increase ❖Proceed with development of District budgets based on Board input ❖Update Board on State budget developments that may impact the District ❖Provide rate and budget information in spring issue of Pipeline ❖Develop appropriate process for adjusting District fees and charges "fo fear the worst often cures the worst" - Shakespeare, Troilus and Cressida Last year, we stopped the bleeding. This year, we must begin to heal the patient. Arnold Schwarzenegger, January 10th message to the Legislature of California 10 Board Discussion Questions ? 11 RWQCB ANNUAL REPORT Douglas I Craig Board Meeting January 27, 2005 RWQCB ANNUAL REPORT Total Flow Treated = 16.4 Billion Gallons Average Daily Flow = 44.8 Million Gallons Peak Hourly Flow = 168 Million Gallons Ash Disposal = 5,307 Tons (wet weight) (for soil amendment) I/;--7/05 1 RWQCB ANNUAL REPORT TREATMENT PLANT ✓ Completed 15,000 Analytical Tests ✓ Approximately 11,000 Hours of Laboratory Work ✓ 100 Percent Compliance With NPDES Permit Requirements RWQCB ANNUAL REPORT COLLECTION SYSTEM OVERFLOWS ✓ 27 Total Sewer Overflows ✓ 6 Overflows Greater Than 1,000 Gallons Causes: Root Intrusion Grease Debris Broken Pipe Equipment Failure Other No. of Overflows 18 1 2 0 2 4 2 EVENTS NEAR PERMIT LIMITS ✓ COPPER LIMIT ✓ MERCURY LIMIT ✓ ENTEROCOCCUS LIMITS NPDES RENEWAL ✓ SPECIAL STUDIES ESSENTIALLY COMPLETE ✓ APPLICATION DUE SIX MONTHS BEFORE EXPIRATION (MAY 31, 2006) ✓ INITIAL MEETING WITH PERMIT WRITER ON MARCH 14, 2005 ✓ APPEARS TO BE FEWER ISSUES ✓ SOME USE OF CONSULTANTS AND SPECIALIZED TESTS 3 RWQCB ANNUAL REPORT ACKNOWLEDGEMENTS RWQCB ANNUAL REPORT RECOMMENDATION Accept the 2004 Regional Water Quality Control Board Annual Report I� Special Studies Required By 2001 Permit SPECIAL Special Studies Required By 2001 Permit (continued) SPECIAL STUDIES RESPONSIBILITY PURPOSE STATUS Ambient Monitoring Joint BACWA Study 126 Priority 4 sampling CCCSD Mandatory Emphasis Pollutants events completed. Final report is Joint Multiple Define and Apportion Hg TMDL expected in Agencies Study Bay Loadings Completed 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 Copper, Nickel De- listing RWQCB ANNUAL REPORT Special Studies Required By 2001 Permit (continued) SPECIAL STUDIES RESPONSIBILITY PURPOSE STATUS Increased Emphasis on CCCSD Mandatory Emphasis On -going Pollution Prevention and Minimization TMDLs Joint Multiple Define and Apportion Hg TMDL Agencies Study Bay Loadings Completed PCB TMDL Completed Pesticide TMDL for Creeks Near Completion Copper, Nickel De- listing Joint Multiple De-list Copper and Completed Effort Agencies Study Nickel for the RWQCB 303(d) List