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Home My WebLink About07.a.3) GM Written Announcements/40(.3) Board Meeting of July 23, 2015 Written Announcements: PROJECT UPDATES a) Public Bidding for Diesel Fuel Tank Repairs, District Project 6170 The Diesel Fuel Tank Repairs project, District Project 6170, will make internal weld repairs to the District's two 200,000 - gallon diesel fuel storage tanks. Repairs were identified using the American Petroleum Institute (API) 653 Above Ground Storage Tank Inspection standard. This project will be advertised in August with bid opening in late August. The cost estimate is $70,000, which is within the General Manager's authority to award. PURCHASING b) Contracts Signed by General Manager during Second Quarter 2015 The Board has asked to receive quarterly reports of the professional consulting agreements entered into by staff that fall within the increased staff authority limits that became effective December 15, 2011. On that date, the limit on staff authority for professional consulting services agreements was raised by the Board from $50,000 to $100,000. This is a report of all professional agreements entered into by staff which fall within the new staff authority limits (over $50,000 and less than $100,000) and amendments that cause agreements to fall within this dollar range. Listed below are all such agreements /amendments entered into during the second quarter of 2015 (4/1/15 6/30/15): 5/6/15 041924 Y Bienati Added $15,000 / $54,000 Consulting Management Group Academy and Executive Team Follow Up 6/3/15 041556 Y KWR Added $25,000 / $75,000 District -wide Right of Way Consulting 6/24/15 043089 N RMC Water Wholesale Recycled $75,000 and Water Opportunities Environmental Study Written Announcements' July 23, 2015 Page 2 of 2 All other contracts that are not considered "professional services," such as maintenance services, equipment, chemicals, and supplies, do not require Board approval regardless of dollar amount. The Board approves the annual budget which includes the expenses that come from these contracts, so these contracts are not included in this report as they have historically been within staff authority. SOLAR POWER c) Response Letter to the California Public Utilities Commission CPUC On February 19, 2015, the Board of Directors authorized the General Manager to execute three power purchase agreements with SunEdison for solar power at the District's Collection System Operations (SCO) Building, Vehicle Maintenance Shop, and Household Hazardous Waste Facility. The California Public Utilities Commission (CPUC) will be considering an item on July 23, 2015 changing the rate structure for solar systems, greater than 75kw in size, which would affect the CSO Building project. If approved the projected savings may be greatly diminished. The District sent the letter (attached) to the CPUC and Governor Brown's Office to explain the impacts of the Proposed Decision and urge the CPUC to protect PG &Es rate structure for solar projects that are currently under consideration or under contract. PUBLIC HEARING FOR DELIQUENT CHARGES d) Public hearing date for delinquent charges has been set for August 6 A public hearing has been set administratively for August 6 to receive comments on delinquent charges for 2500 Annalisa Drive in Concord. Staff has been attempting to collect approximately $103,000 in unpaid capacity fees from the property owner for over two years. The charges arise from an expansion and change in use of the building from an electrical contractor's office and light industrial space to a sorbet and ice cream manufacturing business known as Caffe Classico. The property owner and founder of the business did not seek a District permit for the changes, which would have necessitated payment of the capacity fees based on the change in use. This matter will be discussed at the July 27 Finance Committee meeting. Wmi - I ATTACHMENT 1 PHONE: (925) 228-9500 FAX.- (925) 228-4624 wMv.centralson,org ROGER S. MIX)' General umwger San Francisco, CA 94102 Sccrefat�� oflhe Distriv Sent via email to - MP!. @gpuc, gg._qov NE: PROPOSED DECISION TO PG&E'S CURRENT GENERAL RATE CASE (A.13-04-0121 Dear President Picker, We appreciate your continued efforts to serve the public by protecting consumers and ensuring the provision of safe, reliable utility service and infrastructure at reasonable rates, and your commitment to environmental enhancement and a healthy California economy. We recently became aware of a proposed California Public Utility Commission (CPUC) decision to PG&E's current General Rate Case (A.13 -04 -012) that requires further attention. This proposed decision would financially harm many public agencies, schools, and medium-sized businesses by restricting new customers on PG&E's A-6 rate to only small-sized businesses effective July 23, 2015. Central Contra Costa Sanitary District, a public agency in Martinez, California, responsible for collecting and treating wastewater from approximately a half million residents in central Contra Costa County, recently collaborated with 18 other government agencies in the Regional Renewable Energy Procurement Project (R-REP). This is the nation's largest procurement of distributed solar systems for public facilities, which recently received recognition from the United States Environmental Protection Agency (EPA) and EPA Administrator Gina McCarthy. As a result of R-REP, these 18 agencies have so far contracted for solar systems at 46 public facilities for a total of 12.6 megawatts of power, with additional sites to be contracted in the future. With the elimination or significant changes to A-6, many of the financial benefits for which the R-REP agencies budgeted would disappear. These planned projects may no longer be financially viable, and may no longer be valid in cases where energy cost savings are required to comply with public contracting rules. Without A-6, there would be an estimated loss of $300,000 in net savings to Central Contra Costa Sanitary District and our planned projects may no longer be financially viable. N:VEnvrSec\Admin%Bailey120151Letter\CCCSD A6 Rate Change Letter.docx I$ hcycw paps Re: Proposed Decision to PG&E's Current General Rate Case (A.1 -g4 -012) July 16, 2015 Page 2 of 2 Regulatory uncertainty increases costs for customers, and for public agencies, this affects tax- paying citizens. With the recent Net Energy Metering ruling, Governor Brown and the CPUC have shown that expected financial returns for solar customers are worth protecting. This proposed decision would reverse that signal for projects that are under consideration or under contract, such as ours. The CPUC should be striving to assure customers that dramatic changes are only made with sufficient lead times to respect the development timelines involved in major energy investments. As the assigned commissioner in this proceeding, we urge You to allow customers to take service under Schedule A-6 until a new rate is designed for medium-sized commercial solar customers, We also urge you to protect the structure of Schedule A-6 (no demand charges, high Peak to Off-Peak cost ratio) to ensure that the solar investments we have made and plan to make in the immediate future are protected and can serve to reduce utility expenses for local government agencies and schools, while also maintaining a strong and sustainable clean energy industry in our state, S Ln cerely, Roger S. Bailey General Manager cc: Nancy McFadden N: EnvrSec dm in Baileyk2Ol5NLetter\CCCSO A6 Rate Change Letter.docx