HomeMy WebLinkAbout07.a. Consider action re proposed Demonstration Satellite Water Recycling Facility (SWRF) at Diablo Country Club (DCC)Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: March 3, 2016
Subject:
DIRECT THE GENERAL MANAGER TO DEVELOP AN AGREEMENT
WITH DIABLO COUNTRY CLUB FOR A DEMONSTRATION SATELLITE
WATER RECYCLING FACILITY
Submitted By:
Initiating Dept./Div.:
Danea Gemmell, Planning & Engineering & Technical Services /
Development Services Division Manager Planning & Development Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
JM. Petit — Director of Engineering & Technical Services
7a.
Kent Alm %Roger S. Bailey
Counsel for the District General Manager
ISSUE: For the past six months, District staff has investigated various implementation
models for a Satellite Water Recycling Facility (SWRF) Demonstration Project with
Diablo Country Club (DCC) to produce recycled water for landscape irrigation. This
matter was discussed at the Real Estate, Environmental & Planning Committee and
was most recently discussed at the February 18, 2016 Board Meeting. As directed by
the Board at that meeting, staff is seeking further input from the Board with regard to
this Demonstration Project.
BACKGROUND: On April 23, 2015, the Board of Directors authorized the General
Manager to execute a memorandum of understanding (MOU) with the DCC. The MOU
documented the mutual agreement of the District and DCC as to the benefits of a
Satellite Water Recycling project and to identify and resolve technical issues to the
mutual benefit of all parties at no net cost to the District. The DCC also executed a
MOU with the East Bay Municipal Utility District (EBMUD) to obtain EBMUD approval to
explore the project further because the SWRF Demonstration Project would reduce
potable water demand from EBMUD's service area.
The proposed SWRF Demonstration Project includes diversion of wastewater from a
District sewer trunk line near DCC, a SWRF located on DCC property to treat the
wastewater and produce Title 22 recycled water for golf course irrigation, and return of
the process solids back to the District's wastewater collection system. The goal of the
Demonstration Project is to provide an alternative source of water supply for landscape
irrigation of DCC's golf course using recycled water, and to minimize DCC's reliance on
EBMUD's potable water. The use of recycled water would benefit the public by
offsetting potable water demand.
District staff has also been working with DCC and DCC's consultant, Brezack &
Associates Planning (Brezack), to address technical challenges associated with the
SWRF. Some issues include determining whether or not sufficient wastewater is
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POSITION PAPER
Board Meeting Date: March 3, 2016
Subject:
DIRECT THE GENERAL MANAGER TO DEVELOP AN AGREEMENT
WITH DIABLO COUNTRY CLUB FOR A DEMONSTRATION SATELLITE
WATER RECYCLING FACILITY
available in the District's collection system to meet DCC's recycled water demand at
their proposed point of diversion, determining required on-site storage, identifying
options for wastewater diversion to the SWRF, identifying operational schemes to
minimize risk of collection system overflows/odors/blockages, and determining how to
manage waste streams and discharges from the SWRF to the District's collection
system.
This proposed SWRF with DCC is intended to be a Tong -term Demonstration Project to
inform the District on implementation of potential, future SWRF projects. This
Demonstration Project supports Goal Four of the District's Strategic Plan "Be a Leader
in the Wastewater Industry" and Strategy 2 to "Collaborate with regional water and
wastewater agencies to augment the region's water supply while expanding access to
recycled water for Central San customers":
At the September 17, 2015 Board Meeting, the Board of Directors directed staff to
investigate implementation models with regard to ownership, maintenance, and
operation of the proposed SWRF project at DCC.
In addition to the originally envisioned SWRF Demonstration Project with DCC, District
staff explored other project implementation models with varying divisions of
responsibilities regarding ownership, and operations and maintenance. Each project
implementation model has its own benefits and disadvantages, and risks that would
require mitigation. At the February 18, 2016 Board meeting, District staff presented the
five project implementation models below. For all models, the District would ensure that
the project is cost neutral to the District. However, it is important to note that none of
these options has been thoroughly reviewed for legal constraints or risks.
1. Implementation Model 1: DCC Finances/Owns/Operates the SWRF. (This is
the implementation model referred to in the District's existing MOU with DCC.)
The DCC would likely contract Operations and Maintenance of the SWRF to a
third party.
2. Implementation Model 2: DCC Finances and Owns the SWRF. DCC would
contract Operation of the SWRF to the District.
3. Implementation Model 3: The District Finances, Owns, and Operates the
SWRF. DCC would pay for the full cost of recycled water supplied.
4. Implementation Model 4: The District contracts with a third party to Finance,
Own, and Operate the SWRF (Public -Private Partnership). DCC would pay for
the full cost of recycled water supplied.
5. Implementation Model 5: The District would partner with DCC, Contra Costa
Water District (CCWD), and EBMUD to implement a "Water Wheeling" project.
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POSITION PAPER
Board Meeting Date: March 3, 2016
Subject:
DIRECT THE GENERAL MANAGER TO DEVELOP AN AGREEMENT
WITH DIABLO COUNTRY CLUB FOR A DEMONSTRATION SATELLITE
WATER RECYCLING FACILITY
DCC would participate in financing improvements required for the District to
provide recycled water to a nearby refinery within CCWD's service area. In turn,
CCWD would provide raw water supply rights to EBMUD for an equivalent value
of water, and EBMUD would provide guarantees to DCC for a long-term, lower
cost supply of potable water for irrigation. Any facilities required would be
constructed at the District's treatment plant in Martinez; therefore, this
implementation model does not require construction of a SWRF.
At the February 18, 2016 Board Meeting, the Board of Directors authorized District staff
to apply for a $75,000 planning grant from the California State Water Resources
Control Board Water Recycling Funding Program. The $75,000 planning grant requires
a $75,000 match, which will be paid for by the DCC. With the planning grant, District
staff will be able to address technical and non-technical issues in order to draft an
Agreement with DCC for the SWRF Demonstration Project. A proposed Agreement with
DCC for the SWRF Demonstration Project may then be presented to the Board of
Directors for approval provided the Board directed guidelines can be achieved.
CEQA: Staff has concluded that this conceptual approval for staff to move forward with
these additional activities is exempt from the California Environmental Quality Act
(CEQA) under District CEQA Guidelines Section 15262 since it allows for further
planning and feasibility studies for possible future actions which the District has not
approved, adopted, or funded, and the outcome of these tasks will not have a legally
binding effect on later activities. Approval of this action will establish the Board of
Directors' independent finding that the development of this agreement is exempt from
CEQA. The District will conduct an environmental evaluation of any capital project that
is proposed in the future as a result of this study to determine the need for any
additional CEQA documentation.
ALTERNATIVES/CONSIDERATIONS: The Board of Directors may decline to move
forward or decide to postpone the SWRF Demonstration Project. The Board of
Directors may also request that staff pursue a different implementation model.
FINANCIAL IMPACTS: There will be no net financial impact to the District. District staff
time on this matter will be funded from the Planning & Development Services Division
O&M budget and reimbursed by the DCC. The capital costs, which are estimated
between 10 and 15 million dollars, are intended to be financed with a Clean Water
State Revolving Fund (CWSRF) loan. If the SWRF Demonstration Project is
implemented, the project will be cost neutral to the District. DCC will pay all costs
including annual debt service payments for capital costs, annual operations and
maintenance costs, and future replacement costs.
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POSITION PAPER
Board Meeting Date: March 3, 2016
Subject:
DIRECT THE GENERAL MANAGER TO DEVELOP AN AGREEMENT
WITH DIABLO COUNTRY CLUB FOR A DEMONSTRATION SATELLITE
WATER RECYCLING FACILITY
COMMITTEE RECOMMENDATION: This matter was discussed at the Real Estate,
Environmental & Planning Committee meeting on February 9, 2016. The Committee
was in favor of proceeding with Implementation Model 3 where the District owns,
operates, and maintains the SWRF at DCC provided that risks are mitigated and the
project is at no net cost to the District.
RECOMMENDED BOARD ACTION: Consistent with direction given by the Board,
District staff is (1) seeking a decision from the Board as to whether it wishes to pursue a
Demonstration SWRF at DCC in concept; and (2) if so, provide authorization and
guidelines for the General Manager to develop an agreement with DCC, which will be
brought back to the Board for consideration at a future meeting.
To assist with framing the agreement, staff will prepare the agreement consistent with
the following principles:
1. The SWRF Demonstration Project will be cost neutral for the District;
2. The District will pursue CWSRF financing for the project;
3. Appropriate CEQA consideration and documentation will be undertaken;
4. Appropriate EBMUD project concerns and authorization will be addressed;
5. Legal constraints and liability issues, both short term and long term, will be
addressed; and
6. Taking into account 1-5 above, the agreement will stipulate how the Demonstration
SWRF will be procured, owned, operated and maintained at the DCC to produce up
to 0.5 million gallons per day of recycled water for landscape irrigation.
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