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HomeMy WebLinkAbout08.a.2) (Raftelis PowerPoint) Recycled Water Policy8/28/2014 S.a. 2.) • Current system consists of — Filtration Plant (3.8 MGD of capacity) — Zone 1 distribution system Average Demand Peak Demand Zone 1— Current 35 customers 0.57 MGD 1.50 MGD Zone 1— Concord Landscape Project (15 quick start 0.07 MGD customers) Treatment Plant 1.10 MGD 1.10 MGD TOTAL 1.74 MGD 2.60 MGD • Terms of the agreement as it relates to the Filtration Plant (Phase II facilities) 1. District will maintain in operable condition all Phase II facilities until 1/1/2000 2. District will continue to study and promote the cost - effective use of reclaimed water within its service area 3. District will submit a program for additional utilization of the Phase II facilities. The goal will be the eventual, full, cost - effective utilization of Phase II facilities 3 4 8/28/2014 2 Current program is necessary to meet the requirements of the EPA settlement agreement, which resulted from the SWRCB permit requirements in 1971 Recycled water sales revenue can be used to offset recycled water costs based on market conditions Wastewater users need to pay for the remaining system costs 5 Proposition 218 requires that the rates charged shall not exceed the proportional cost of providing service Since the existing system costs are a result of the EPA settlement agreement, unrecovered costs can be considered as wastewater costs However, if the system is expanded beyond the scope of the agreement, then wastewater customers should not have to pay for expansion of the recycled water system 8/28/2014 3 Mission — To protect public health and the environment by: Collecting and treating wastewater Embracing a policy of sustainability for the responsible use of existing resources Promoting environmental stewardship Vision — be a high performance organization that provides exceptional customer service and full regulatory compliance at responsible rates What should be the District's position on the recycled water program? Should CCCSD focus on its core services of providing wastewater services at reasonable rates? Should CCCSD's wastewater customers incur additional costs to expand recycled water program? 8/28/2014 4 • Option 1: — District continues to expand recycled water system with some impacts to its wastewater customers • Option 2: — Customers who want recycled water system pay for recycled water costs • Potable water purveyors may have to bear costs to provide recycled water at reasonable rate — District will provide wholesale recycled water at cost via take or pay contract to limit financial risks • Pros: — Good steward /promoter of water resources — Attract more customers • Cons: — More financial risks — If recycled water rates are not sufficient to cover expenses, WW users have to bear costs 9 • Pros: — Less financial risks to District since recycled water customers will pay costs — Complies with Prop 218 since recycled water bears full costs • Cons: — May not be economically feasible — May not promote recycled water use 10 8/28/2014 5 8/28/2014