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HomeMy WebLinkAbout03.a. Approve minutes of 4-14-11 meeting.President Hockett called the meeting to order and requested�th�Ot° ne Seca call roll. The a The Board and staff joined in t CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 14, 2011 President Hockett reported on the April 7, 2011 Contra Costa Mayors' Conference hosted by the City of San Ramon. 2 a. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 14, 2011 4. CAPITAL PROJECTS BOARD WORKSHOP Director of Engineering Ann Farrell stated that she would review the planned Fiscal Year (FY) 2011 -12 Draft Capital Improvement Budget (CIB), selected FY 2011 -12 capital projects, the proposed Draft Ten - Year Capital Improvement Plan;, (CIP), future challenges facing the District in terms of capital projects, and the next steps in the capital budgeting process. She also referenced the revised draft. Executive Summary which explains the capital program and asked the Board to review it and provide any input before it is finalized in June. Estimated FY 2011 -12 Program Program Expenditures Treatment Plant $ 7.1 million Collection System 12.8 million General Improvements 5.4 million Recycled Water 0.6 million TOTAL $25.9 million "Ms. Farrell said staff i carefully reviewing what the future looks like in terms of sewage treatment technology and evaluating how the District might position itself to participate in emerging technologies. When originally constructed, the District's existing treatment approach was state of the art, recovering /reusing energy during the incineration process and recovering phosphorus by reusing ash from the incinerators. New technologies are emerging that emphasize anaerobic treatment and resource recovery. Before making - expensive renovations and improvements to the existing treatment plant, it is important to properly weigh the District's current treatment approach against potential plant modifications. This will involve taking a comprehensive look at how to sustainably treat wastewater for the next 50 plus years, and incorporating findings of the greenhouse gas (GHG) study of incineration versus anaerobic digestion. Staff is considering an 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 14, 2011 approach where consultants will be invited to develop and submit concepts for the District's treatment plant of the future and a phased approach to get there. Ms. Farrell said it is important to know where the District is headed in order to make the most sensible investments in the current CIB and CIP. Ms. Farrell said the District has built a comprehensive model to analyze its GHG emissions under different scenarios for planning purposes. The base model simulates GHG production and energy usage /cost under current operating conditions. Model scenarios include switching to fluidized bed incinerators, making modifications to the existing cogeneration system, progressing to a higher level of treatment (nitrification/ nutrient removal), and switching to anaerobic digesters. The model also takes into account the costs of electrical power, natural gas, landfill gas and COZ allowances to test the sensitivity of the different scenarios to energy prices. Member Williams commented that he was pleased to see that digesters are incorporated into the model because there are potential revenues from tipping fees and a possible resource recovery, program, which would allow gas generation, potential renewable energy credits that ,could be sold on the open market, and the sale of cap and trade offsets. ' `Doing so places the costs of switching to anaerobic digestion on a plane that might be competitive with staying with incineration. Ms. Farrell agreed and reiterated that one of the goals of the "plant of the future" is to minimize net energy {usage. With regard to planned renovations at the treatment plant, Ms. Farrell said staff is performing condition assessments on the various plant components to determine the likelihood of failure and /or the remaining life of the asset. A "similar approach is being developed to assess the treatment plant mechanical equipment, including the sedimentation tanks, scum spray system, tank baffles, and grit handling facilities. Ms. Farrell also reviewed the status of the dry /wet weather bypass structure, which must be in service before the Outfall Improvements Project can get underway; current expectations are that the project will be delayed until mid 2012. Several abandoned primary tanks are taking up valuable space on the treatment plant site and continue to deteriorate, Arid the abandoned lime silo also should be removed. The Ten -Year CIP includes a budgeted $1.3 million for demolition of the abandoned primary tanks and lime silo in FY 2015 -16, but that project will most likely be accelerated due to delay of the Outfall Project and a favorable bid climate for demolition work. Ms. Ferrell concluded her remarks on the treatment plant program by stating that $146 million (42 percent) of the $345 million Ten -Year CIP is dedicated to the treatment plant, including $63 million (18 percent) for renovations and $71 million (20 percent) for an ammonia removal project in response to new regulatory requirements. Ms. Farrell briefly explained how ammonia removed through the "nitrification" process is converted to nitrate. In order to accomplish this, the volume of the aeration basins will need to be doubled; correspondingly, the demand for oxygen /aeration will also double. Staff is in the process of examining other approaches that could require less tank space and /or less power. In response to a question from Member Williams, Ms. Farrell said that while this nitrification process could be expanded to achieve nutrient (nitrogen and 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 14, 2011 phosphorus) removal in the event it becomes mandated by future regulatory requirements, the cost of doing so has not been included in the proposed Ten -Year CIP. COLLECTION SYSTEM PROGRAM Ms. Farrell presented a breakdown by project of the $12.8 million capital expenditures proposed for the collection system program during FY 2011 -12. She noted that all 6 -, 8 and 10 -inch sewer mains in the District have been evaluated,via'televised inspection. To date, over 30 miles of sewer mains have been fully renovated, with 53 miles remaining. Renovation of the remaining sewer pipe is included in the capital budget for completion over the next six to seven years at an estimated cost of roug ty $280 per foot. This focused effort on pipe renovations has had a corollary effect on reducing sewer service overflows within the District; the downward trend in overflows has been significant since the piping renovation program began. Ms. Farrell concluded her remarks on the collection system operation by stating that,$172'million (50 percent) of the $345 million Ten -Year CIP is dedicated to the collection system program, including V26,million (35 percent) for piping renovations, $14 million (4 percent) for pumping statl6h projects and $20 million (6 percent) for eight high - priority capolty projects. >LED WATER P Ms. Farrell said that $310,000 of tho $55 in FY 2011 -12 is allocated to planning ac Continued Expansion, and.$240,000 is a Industrial Concepts Planning and the Co water projects were excluded from the 1= Irrigation Project and the Martinez Refin( former, it appears that Title 16 funding is options are being pursued. For either pr District share of the construction cost i 0 budgeted fbr the recycled water program fdr the Zone 1 Recycled Water ited for planning other projects, including d Naval Weapons Station. Two recycled 11 -12 CIB: the Concord Landscape . ecycled Water Project. With :regard to the unlikely; as to the latter, various funding if State or Federal funding is received, the included in the current budget. The majority of the $5.4 million general improvements budget for the coming fiscal year is dedicated to the completion of the Collection System Operations Department (CSOD) Facility Improvements project ($2 million) in Walnut Creek. Construction is well underway'yand compl6bon is anticipated in mid 2011. Ms. Farrell said $510,000 has been allocated to b6gin seismic improvements at the Headquarters Office Building (HOB) in Martinez. She presented a slide showing the proximity of the Concord Fault to District facilities (less than a mile) and explained how this has impacted design criteria for seismic upgrades of the HOB, the Solids Conditioning Building, the Pump and Blower Building, and the Plant Operations Building. Staff has looked at the cost to replace each of these buildings versus the cost of seismic upgrades and determined that it is far more cost effective to perform seismic upgrades. A total of $12.7 million has been included in the Ten -Year CIP for retrofitting various buildings over the next several years to provide increased safety for personnel and the protection of plant processes. 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 14, 2011 Ms. Farrell concluded her presentation by reviewing the projected Sewer Construction Fund revenues of $22,246,000 for FY 2011 -12, which takes into consideration the proposed $30 rate increase. She noted that even with this increase, capital cash flow estimates indicate that approximately $3.6 million will be drawn from the Sewer Construction Fund in FY 2011 -12. Without the $30 rate increase, this drawdown would be roughly $10 million. She said staff will be comina back to the Board in June to m- n' -qider (1) adnntinn the Noi No The 6 7