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Home My WebLink About07.d.1)b) Action Summary-Real Estate, Environmental & Planning Committee 07-14-15Committee: Chair Tad Pilecki Member Mike McGill fim Central Contra Costa Sanitary District � 01 ■ j Tuesday, July 14, 2015 2:00 p.m. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California Invited Guests: Tim Tucker, City Engineer for City of Martinez (left after item 3.) Staff.• General Manager Roger Bailey Deputy General Manager Ann Sasaki Director of Administration David Heath Planning and Development Services Division Manager Danea Gemmell Finance Manager Thea Vassallo Provisional Senior Engineer Nathan Hodges Provisional Associate Engineer Melody LaBella Senior Administrative Technician Cindy Granzella 1. Call Meeting to Order Chair Pilecki called the meeting to order at 2:00 p.m. BOARD OF DIRECTORS: MICHAEL R. MCGILL President TAD J. PILECKI President Pro Tent PAUL H. CAUSEY JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228 -9500 FAX: (925) 372 -0192 www.centralsan.org 2. Public Comments None. 3. Discuss request by City of Martinez to annex and /or assist with Sanitary District No. 6 (SD -6) Real Estate, Environmental & Planning Committee Action Summary July 14, 2015 Page 2 Tim Tucker, City Engineer for City of Martinez, stated that the City was interested in having the District take over SD -6, a small diameter system that was annexed to the City in 2012. He explained that the City will need to raise rates in order to improve the current facilities being used, and in order to raise rates, an election will be necessary. Member McGill stated that he is interested in an efficient and effective government system, and discourages septic and small package plants. Chair Pilecki agreed it is better to have one central agency, but would like to see solutions for costs. He would like to receive information regarding cost to the District. Chair Pilecki also recommended that staff look at the existing facilities to evaluate options. Planning and Development Services Division Manager Danea Gemmell will work on a concept level plan to support SD -6, work with the City to develop a mutual aid agreement, and an emergency response plan. She will also determine the next steps for the Committee. COMMITTEE ACTION: Discussed and provided input to staff. 4. Receive update on CoCo San Sustainable Farm Ms. Gemmell reviewed the memo and AgLantis Annual Report included in the agenda materials. She stated that permit application will be resubmitted to the County by July 20, 2015. COMMITTEE ACTION: Received the update. *5. Receive report on total cost of Recycled Water Program, including operating, capital, and wholesale costs Ms. Gemmell distributed a handout of her presentation (attached). She reviewed the history of the Recycled Water Program, including the agreement for Zone 1. Ms. Gemmell stated that the total capital expense invested in the Recycled Water distribution system is currently at $22.4 million, and the District's annual average cost is about $414, 000. General Manager Roger Bailey explained that staff is looking for a unit rate for selling wholesale water. A rough minimum and maximum unit price has been established. Ms. Gemmell explained that based on a preliminary assessment, the minimum unit cost is about $291 1acre foot, and the maximum unit cost is about $420 1acre foot. Member McGill suggested reviewing all numbers, and simplifying the presentation before taking it to the full Board. Chair Pilecki concurred. COMMITTEE ACTION: Received the report and provided input to staff. Real Estate, Environmental & Planning Committee Action Summary July 14, 2015 Page 3 *6. Discuss policy questions regarding Zone 1 Recycled Water connections, including: a. Cost recovery (payback policy) Ms. Gemmell asked for guidance on establishing a payback policy on new Zone 1 Recycled Water connections. Chair Pilecki stated that he supports the 15 -year methodology, and Member McGill agreed, but stated that going forward a more formal policy needs to be adopted. Chair Pilecki also stated that in continuing to build out Zone 1, the goal should be year round, not just seasonal, and suggested looking at industrial customers as well. b. Backflow preventers Member McGill stated that he does not think the District should take financial responsibility for the backflow preventers, with the exception of the customers that have already signed a letter of intent. Chair Pilecki agreed. C. Alternate approaches for funding new Recycled Water connections /retrofits Chair Pilecki stated that the users should pay for the backflow preventers either up front, or through the Recycled Water rates. Member McGill agreed, and suggested the option of a Contractual Assessment District (CAD). d. Recycled water hydrant meters Ms. Gemmell distributed two handouts (attached) showing the number of gallons taken by hydrant customers for the month of June, as well as what Contra Costa Water District (CCWD) and East Bay Municipal Utility District (EBMUD) charge for use of their hydrants. She explained that all 21 of the District meters are out to customers now, however not all are being used. Chair Pilecki suggested a monthly charge if a minimum monthly usage is not met. Mr. Bailey confirmed that a policy for monthly charges will have to be confirmed by the full Board. e. Recycled water theft Provisional Associate Engineer Melody LaBella explained that a local contractor was recently found to be taking recycled water from a hydrant without a District meter. The contractor had been on a waiting list to receive a hydrant meter, and since the incident occurred, a meter has been issued. A charge for working and operating without a permit was issued and paid. Member McGill also suggested adopting a policy on water theft. COMMITTEE ACTION: Provided direction to staff. Real Estate, Environmental & Planning Committee Action Summary July 14, 2015 Page 4 *7. Discuss level of service for Residential Recycled Water Fill Station Mr. Bailey explained the potential to add Sundays to the distribution of the Residential Fill Station, but it would result in additional cost. Provisional Senior Engineer Nathan Hodges distributed the current charts of residential users at the Fill Station (attached). Ms. Gemmell stated that the District is pursuing a temporary staff agency to staff the Fill Station in order to minimize District staff costs. Chair Pilecki and Member McGill agreed to expand the distribution to Sundays, and would like staff to explore the option of adding additional stations or a hydrant. COMMITTEE ACTION: Discussed and provided input to staff. 8. Discuss naming options for Laboratory Building Member McGill explained that he previously suggested naming the Laboratory Building after former Board Member Dr. Mario Menesini, and he still believes it is a deserving honor. Chair Pilecki agreed, and recommended taking the matter to the Board for consideration. COMMITTEE ACTION: Discussed and provided input to staff. 9. Standina Items a. Receive monthly update on Comprehensive Wastewater Master Plan (CWMP) b. Receive monthly update on District's Recycled Water Wholesaling Study C. Receive monthly update on: Residential Fill Station 2. Contractor Hydrants 3. Household Hazardous Waste Facility COMMITTEE ACTION: Received the updates. 10. Announcements a. Future scheduled meetings: Tuesday, August 11, 2015 at 3:00 p.m. Tuesday, September 8, 2015 at 8:00 a.m. Tuesday, October 13, 2015 at 3:00 p.m. Real Estate, Environmental & Planning Committee Action Summary July 14, 2015 Page 5 Chair Pilecki and Member McGill suggested September 8 at 8:00 a.m. for the September Committee meeting. b. Announcement on Concord Landscape Project C. Ms. LaBella stated that Assembly Member Catharine Baker may be visiting the District to tour the Residential Fill Station. d. Mr. Bailey stated that Daniel Borenstein of the Contra Costa Times will be coming to tour the District facilities, and will sit down and talk with the senior team. e. Mr. Bailey stated that he will be meeting with Alex Coate of EBMUD to discuss Recycled Water related to Rossmoor, Moraga, and Walnut Creek. Member McGill stated that the Mayor of Lafayette recently approached him to ask about Recycled Water. Ms. LaBella explained that it will be looked at in the Recycled Water Wholesaling Study. g. Member McGill suggested placing Recycled Water signs at the District South Basin, as well as the fountain area of the main entry. h. Member McGill stated that he will be speaking at the San Ramon Valley Democratic Club on the 23`d. No staff support is needed, but anyone is welcome. Member McGill suggested researching different ways to promote Recycled Water and other District programs, such as possibly using information kiosks or information boards. j. Mr. Bailey stated that the Mayor of Danville would like to discuss Recycled Water options. COMMITTEE ACTION: Received the announcements. 11. Suggestions for future agenda items None. 12. Adjournment — at 6:19 p.m. * Attachment 7/14/2015 5. (tkndaw) Recycled Water Program Costs Danea Gemmell Planning & Development Division Manager July 14, 2015 �� Central Contra Costa Sanitary District Background Taken from History of Recycled Water Presentation at September 4, 2014 Board Meeting 1 4-1 11/18174 Construction begins on 5A -II Project Filter Plant 6/13/72 State and Federal Grant Application 7/14/2015 2 nor 12/12/85 EPA/SWRCB Settlement for 5A Project with $68.6M in Ir Grant Funds Togo 1980 1981 1982 19 I 1985-" 1986 1I 198'77W 1989 1 l 9/26/86 7/14/2015 2 7/14/2015 N 11/22/95 Project Specific CCCSD and CCWD j� � sign the Project - (L�� /�/) 1 � Specific Agreement for TO3GO Zone 1 11/2/94 �'ided �yw 8/1995 General Title 22 Agreement Improvements for REW Filter Plant with rated from 30 CCWD •�•� MGD to 3.8 • 1162 Acre -feet in Normal MGD 1994 Year 1st REW Revenue HILL received 7/14/2015 N ZONE 1 .��1:... RECYCLED WATER PROJECT Project Specific Agreement for nNEZ Zone 1 , :k • Geographic Area with Rights to Purvey Recycled `} w Water r • 1162 Acre -feet in Normal -t i ;t; CONCORD Year PLEASANT • 1626 Acre -feet in Dry Year HILL z r , r WALNUT t CREEK Jaw. 7/14/2015 N 2013 Recycled Water Annual Report • 35 Total Zone 1 customers use 1.5 MGD • Treatment Plant uses 1.1 MGD • Available Capacity is 1.2 MGD 2000 2001 2002 200# x:2006 "2011 2.012 2013 2014 1 1 /� 3MUU Letter notes ,Kf further interest in Morinda Pipelin EBMUD )ject as not co,, iective Recycled Water Use *Usage based on Recycled Water Annual Reports nstruction of Concord Landscal r1roject gins 7/14/2015 M Historical Average DercmGgeo/ Customer Usage DercmGge of Estitruted Treatment D1aM Usag< Recycled Water Annual Usage 1997 -2014 00 Imo® I�0 Custo 2 00 00 Wholesale Customer Treatment - 0® Plant 71% Sao Nbt.WTOTAL -- L.7/%. =6% D TOTAL fOR CALENDAR YEAR DercmGgeo/ Customer Usage DercmGge of Estitruted Treatment D1aM Usag< 00 Imo® I�0 00 00 0® Sao Capital Projects Projects that benefit both Retail Customers and Treatment Plant were split based on historical water use percentage 29% -71% 7/14/2015 5 7/14/2015 Wholesale Customer - Treatment Plant Capital Costs Share - $4,360,659 __6097 Utllity Wn"S Upgrade _ 2001 6109 Energy Management Plan 2001 6141 TP Cathodic Prot 2006 7261 RW Cathodic Protection 2014 CBenefits 7162 6091 both Plant and Retal C�stoment Recycled Wtr - Trt Pit Fac Telemetry System Replacement 1999 2000 7196 Filter Plant Enhancements 2001 6010 Plant SecurityProiects 2001 6159 — 6161 6142 Pump Shelter TP Elect/Instr Rep l CS Cathodic Prot 2003 2005 2006 7187 Recycled Water Master Pin 2008 7259 Recycled Water Planning 2014 7279 Concord Naval Weapons REW 2014 Retail Customers —Zone 1 Capital Costs Share - $12,766,997 Project No. Project Name Year Complete Befall Custaner- Distrbution Only 7105 Recycled Water -Urban Irrigate 1998 7163 7202 Recycled Water - Industrial Recycled Water gmtOpir 2001 2002 5170 PHRD PH 4 &S /Cons PHA 2002 7201 Recycled Water Ind Dena 2003 7183 Piping Ren & I 2004 5659 PH Rel Int- PH S 2005 7167 RecYcled Water - PH Zone 1 2007 8192 Capital I Services 2008 7278 Grayson Creek REW Repair 2010 7194 Recycled Water Zone 1 2012 7303 RW Une Conco/Malthy Rt2air 2013 7300 RefinM MMled Water 2014 7306 Zone 1 Recycled H2O 2014 7299 Concord Landscape Project dosed : 2014 • Proportional Cost Share of Projects that benefit Distribution System are included. AM, M Program Costs Costs prepared by Finance with review by Raftelis Financial Consultants in 2015 Recycled Water Operations Allocation: Historical 5 lit 1997 -2014 29% 71 % Wholesale 1001/. Operating Revenue Retail Customers Customer Treatment Plant*, Total Retail ReW sales 2,668,161 2,668,161 0 &M Grant 192,436 192,436 City of Concord Contract Revenue 268,486 664,524 933,010 City of Concord Credit (835,027) (835,027) Portion ofSSCfor process water 1,569,864 1,569,864 Total Operating Revenue 2,294,056 2,234,388 4,528,444 Expenses Lahor, power, chemical 902,754 2,234,388 3,137,142 Total Expenses 902,754 2,234,388 3,137,142 INCOME (LOSS) 1,391,302 (0) 1,391,302 7/14/2015 7 Recycled Water Capital Costs Allocation: Historiml5 lit1997 -2014 19% 71% Wholesale 100% 6-A-tail Capital Contributions /Revenue Customers Customer Treatment Plant To,., Concord Capital Reimbursement 1,786,254 4,421,122 6,207,376 SRG Loan Proceeds 839,368 2,077,504 2,916,872 Recycled Water Rev from 0 &M 1,324,766 Expenses (7S0) 1,324,766 Grant Revenue (Prop 84) 1,030,000 CSO 20,631 1,030,000 Total Capital Contributions /Revenue 4,980,388 6,498,626 11,479,014 Capital Expenses Operator 111 89,273 89,273 SRF Loan Payment 861,536 2,132,372 2,993,908 Recycled water infrastructure 12,766,997 4,360,659 17,127,656 Active Projects 1,072,316 1,221,796 2,294,112 Deputy GM 15,189 13,839,313 5,582,455 19,421,768 Total Capital Expenses 14,700,849 7,714,827 22,415,676 CAPITAL INCOME LOSS COSTS REMAINING OFFSET (9.720.461 (8,329,159) 1,216,2011 (1,216,201) 110,936,662) r p Annual Recycled Water Costs FY 2014 -15 Labor (095) Recycled Water Eng 24,254 42,492 CSO 14,939 21,754 POD 8,194 6,900 Fill Station Expenses (077) Eng 9,766 CSO 23,639 POD 20,853 Expenses (7S0) Eng 19,848 15,550 CSO 20,631 17,996 POD 121,223 52,487 Subotal 209,089 211,437 Allocations for Full Cost Recovery Operator 111 89,273 89,273 Ops Shift Supervisor 8,811 8,811 Plant Ops Superintendent 9,922 9,922 Plant Maint Superintendent 9,922 9,922 Ops Division Manager 13,247 13,247 Plant Maint Div Manager 13 ,247 13,247 Planning& Development Manager 13,247 13,247 Deputy GM 15,189 15,189 Director of Engineering 15,189 15,189 General Manager 16,870 16,870 08&1VITatal 414,007 416,355 7/14/2015 M Wholesale Rate Alternatives O &M -Labor 237,366 2,181 $109 O &M - Expenses 141,071 1,623 588 Capital Component Maintenance $75,000 2,181 $35 Treatment $128,114 2,181 $59 TOTAL WHOLESALE RATE 5291/af 50.67 /hcf O &M -Labor 237,366 21181 $109 O &M- Expenses 141,071 1.621 588 Capital Component Maintenance 575,000 2,181 $35 Treatment 5410,032 2,181 $188 TOTAL WHOLESALE RATE $420 /af 50.96/hcf Questions...? ��CD_ 7/14/2015 f�.d• Gallons Taken by Customers (June 2015) 120,000 101,265 100,000 - - - - - - 82,290 80,000 - - - 60,000 - 40,000 - -. - 37,698.. 27,733 20,000 16 286.13,300 - - - - _I - 9,689 3,946 0 U- - 1,056 6,565 — 1,260 - 0 0 M 939 0 259 0 - 0- c' ce cQ er AP 'yam ti� ti� �a� Q c5 eti cc t`� i`c �e ec� ac �y �\ co L° Lc'�e ��0 e�e� eca� ewes c` ae a�\� o�� FQa Fie kale J�a ce,� tae `� La a 4" ago ca ca ca *fie ea o� of Ica o cp h as c a� o� Deco Deco o�co � O�° `\� ��o o �° `moo �� * *`o' \c� \`�� e`'b\ okC okC, o,�c. `off `�� ado\\\° 0a\\`e caecC,° *5�eec5 �� O�a�\o y1 Q 5a�0 eke * Jae `ate h Jc *Customers have not report June readings * *New Customers &.. d. TEMPORARY HYDRANT WATER COSTS Water Quantity Service & Demand Energy Facilities Charge Charge Surcharge Public Fire Projection Surcharge CCWD $3.4513 per HCF $9.1304 per day for a $0.5614 per HCF $0.5169 per day for a 3 -inch meter; 3 -inch meter Deposit $700; New account Charge $17 Registered Users Gallons per month Visits per month Table 1: Residential Fill Station Gallons taken and Trips by date Date ��>��s ' T pips 7/11/15 97,521 445 7/10/15 80,555 391 7/9/15 861182 408 7/8/15 89,681 437 7/7/15 91,681 438 7/6/15 100,088.5 480 7/4/15 43,547 214 7/3/15 101,759 464 7/2/15 98,021 504 7/1/15 91,310 467 6/30/15 911556 463 6/29/15 98,807 489 6/27/15 95,221 452 6/26/15 86,685.5 441 6/25/15 821108 398