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HomeMy WebLinkAbout19.c. Minutes Real Estate, Environmental & Planning Committee 11-27-17Page 1 of 8 Item 19.c. AOL Central Contra Costa Sanitary District December 7, 2017 TO: HONORABLE BOARD OF DIRECTORS FROM: DONNA M. ANDERSON, PROVISIONAL SECRETARY OF THE DISTRICT SUBJECT: NOVEMBER 27, 2017 - REAL ESTATE, ENVIRONMENTAL & PLANNING COMMITTEE - PRESIDENT CAUSEYAND MEMBER PILECKI Attached are minutes of the above Committee meeting. Strategic Plan Tie -In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Foster Customer Engagement and Awareness ATTACHMENTS: 1. Minutes of 11-27-17 Real Estate, Environmental & Planning Committee Meeting December 7, 2017 Regular Board Meeting Agenda Packet - Page 233 of 240 Page 2 of 8 Jl Central Contra Costa Sanitary District SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT REAL ESTATE, ENVIRONMENTAL & PLANNING COMMITTEE MINUTES Monday, November 27, 2017 9:00 a.m. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California (;nmmittPP Chair Paul Causey Member Tad Pilecki BOARD OF DIRECTORS: PAUL H CAUSEY President JAMES A. NEJEDLY President Pro Tem MICHAEL R. MCGILL TAD J PILECKI DAVID R. WILLIAMS PHONE: (925) 228-9500 FAX. (925) 676-7211 www.centralsan.org Guest Chris Charrette, Treatment Plant Manager, Acme Fill Corporation (left after Item 3.b.) Staff Roger S. Bailey, General Manager Donna Anderson, Provisional Secretary of the District (left after Item 4.a.) Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Jean -Marc Petit, Director of Engineering and Technical Services Melody LaBella, Program Manager - Resource Recovery Edgar Lopez, Capital Projects Division Manager (arrived during Item 3.b.) Lori Schectel, Environmental and Regulatory Compliance Division Manager Tim Potter, Environmental Compliance Superintendent Rita Cheng, Associate Engineer Lupe Saldana, Administrative Services Supervisor 1. Call Meeting to Order Chair Causey called the meeting to order at 9:00 a.m. December 7, 2017 Regular Board Meeting Agenda Packet - Page 234 of 240 Page 3 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 2 2. Public Comments None. 3. Items for Committee Recommendation to Board a. Review draft Position Paper authorizing the General Manager to amend an existing professional engineering services agreement with CDM Smith to add scope and increase the cost ceiling from $97,900 to $433,000 for public- private partnership (P3) advisory services for Central San's Solids Handling P3 Project, District Project 7358 Mr. Petit reviewed the information in the draft Position Paper provided in the agenda packet materials. He shared that District Counsel Kent Alm fully supports the selection of Hawkins Delafield & Wood, LLP (Hawkins) for legal advisory services and stated that the cost increase for the CDM Smith contract exceeds General Manager signature authority. Mr. Bailey explained that in his experience with P3 projects in San Diego, the projected costs for technical, legal and financial consulting are not outside of the norm and stated that Hawkins provided legal services on P3 arrangements in San Diego as well. In response to concerns from Chair Causey regarding use of funds from the Server Room Relocation Project, District Project 8243, staff explained that the project is proceeding and is under design. However, not all of the $1 million in budgeted capital funds will be spent this fiscal year due to delays during design to resolve issues. Mr. Bailey recalled that prior to the Board's decision to convert from program -based to project -based budgeting for capital projects, the General Manager had the authority to reallocate funds between projects based on changing needs, and that it is an acceptable industry practice. Chair Causey expressed concern that staff will request an additional $1.5 million in next year's budget to cover funds taken from projects this year. Mr. Bailey said he instructed staff to use existing project funds rather than increase the current budget and only if needed would he request to replenish funds next fiscal year. Member Pilecki expressed concern that the project cost was undervalued because the budgeted amount stated for staff time did not include management staff time spent on the project. Mr. Petit agreed that staff time is an estimate but also clarified that management staff time is purposely not included because their time is considered an operating cost, whereas time spent on the project by non -management staff is included in the project cost and charged to the project. December 7, 2017 Regular Board Meeting Agenda Packet - Page 235 of 240 Page 4 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 3 Member Pilecki recalled a prior Committee meeting discussion regarding creation of an advisory group consisting of members from other agencies to assist the P3 process and asked if staff created the panel. Mr. Baily responded that he has had conversations with Water Environment & Reuse Foundation (WE&RF) about setting up a P3 workshop and he is hopeful that one will be hosted at Central San. He said WE&RF is completing its fundraising process and Central San is one of seven agencies that will be contributing funding. Member Pilecki said he would like to attend the workshop. In response to Chair Causey's concern that the draft Position Paper does not mention preparation of a business case analysis for the P3 project, Mr. Petit clarified that staff will be developing lifecycle costs and conducting triple bottom line analyses as part of this process, which effectively serve as a business case analysis. He said that if this analysis does not result in a good business case, the project would likely not be recommended. Mr. Bailey added that the project will get to a point where it can be determined if it should be done. Chair Causey asked why this information is being shared with the teams. Mr. Bailey explained that the goal is to transfer risk from Central San to the P3 consortium. Mr. Petit explained that all information will be compiled in a matrix and team specific information would be shared with each team, because their input is needed to accurately complete these life cycle cost analyses to compare them against Central San's costs. Mr. Petit also added that CDM Smith is helping put together the lifecycle costs. Chair Causey asked what the total cost beyond the $1.4 million budgeted will be for this project. Mr. Bailey said that none of the teams know the total cost at this point, however, once known it will be part of the Board's decision whether to proceed with the project. Member Pilecki said he was comfortable with the staff recommendation, but suggested the draft Position Paper be augmented to include a statement that the transfer of funds from the Server Room Project is possible because that project has been delayed. Chair Causey said he could not recommend Board approval because of the movement of funds between projects and because the source of additional funds needed to cover an estimated $2 million increase in next year's capital budget is unknown. COMMITTEE ACTION: The Committee was split on this matter, with Chair Causey opposed and Member Pilecki in support, so it will be presented to the full Board for consideration with no Committee recommendation. December 7, 2017 Regular Board Meeting Agenda Packet - Page 236 of 240 Page 5 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 4 b. Review draft Position Paper authorizing the General Manager to execute a four-year permit contract with Acme Fill Corporation (Acme) for discharge of treated landfill leachate from the Acme landfill located in Martinez, California through December 31, 2021 Mr. Potter reviewed the information in the draft Position Paper provided in the agenda packet materials covering the history to date of the permit contract with Acme Fill Corporation. He added that Acme, since its new ownership in 2000, has proven to run a high-quality plant. Mr. Potter introduced Acme Treatment Plant Manager Chris Charrette and explained that Mr. Charette was attending the meeting to request a change to the billing formula established in the current permit contract. Mr. Potter explained that Central San uses Chemical Oxygen Demand (COD) and a multiplier (COD x.35) to calculate Acme billings to ensure cost recovery for accepting the treated leachate into Central San's system. The COD multiplier was established in the initial permit contract because the treated leachate was observed to have an inhibitory effect on the biological media used to measure Biochemical Oxygen Demand (BOD) while measuring COD was not subject to this effect. The COD multiplier was used to establish a surrogate BOD number to calculate the Sewer Service Charge for the treated leachate. He is recommending to not change the billing formula in the permit contract. However, Acme is requesting that billings be based on reported BOD data instead. Mr. Charrette explained to staff and the Committee that Acme treats mostly ammonia, uses a complete nitrification process, and nothing toxic or detrimental is discharged to Central San's treatment plant. He said that Acme has been treating at a high level for the last 17 to 18 years. Recently they did a six-month study of their BOD numbers which were consistent with a few anomalies. He added that using BOD numbers are the analytical data standard and is asking Central San to use BOD to calculate billing instead of COD and the multiplier. Staff responded to questions from the Committee regarding various measurements of COD and BOD, terms of the contract, testing methods, past studies, and the financial effect of removing the multiplier. The Committee recommended extending the current contract for six months (to June 31, 2018) to allow time to complete any relevant testing and other studies to determine whether to continue or discontinue the use of the COD multiplier for SSC billing purposes. This study should assess the impacts of changing the billing method to be consistent with how other commercial billings are calculated, set up a COD billing rate if needed, and research Los Angeles county landfill leachate billing methods. December 7, 2017 Regular Board Meeting Agenda Packet - Page 237 of 240 Page 6 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 5 The Committee requested staff to work with Acme and return to the Committee with their findings and a recommendation. Chair Causey commented that because Acme has made this request on prior contract renewals, a rebate retroactive to the current contract term ending date (December 31, 2017) should be considered when the agreement is renewed, if applicable. The Committee directed staff to prepare a brief Position Paper for the December 7, 2017 Board meeting recommending the six-month extension of the current contract. Mr. Charrette thanked staff and the Committee and left the meeting. COMMITTEE ACTION: Reviewed and recommended Board approval of extending the contract for six months; and directed staff to return to the Committee with its findings. 4. Other Items a. Receive update on the November 21, 2017 meeting with representatives of Contra Costa Water District (CCWD) and Santa Clara Valley Water District (SCVWD) to discuss the concept of a recycled water exchange project with Central San Mr. Bailey said that his discussion with both agencies' General Managers and senior staff on the concept of the Refinery Recycled Water exchange was well received. SCVWD's Chief Executive Officer requested that each Board President (Central San and CCWD) sign a letter encouraging evaluation of this project concept as a precursor to entering into a memorandum of understanding (MOU). Mr. Bailey said that CCWD did not need to take this item to their Board for approval because their Board President already has the authority to sign letters on behalf of their Board. The Central San letter drafted by Ms. LaBella will be taken to our Board on December 7, with the intention that it will be submitted to the SCVWD Board prior to their December 19 Board meeting, during which SCVWD staff will provide an update on the Regional Desalination Project and discuss the Refinery Exchange Project to determine if their Board is supportive of their staff spending time to analyze it against their other water supply alternatives. Mr. Bailey noted that Central San may need to hire a consultant if the water exchange project progresses. Member Causey requested that staff time spent on this project be tracked and reported as part of the monthly Capital Projects expenditure summary. COMMITTEE ACTION: Received the update. December 7, 2017 Regular Board Meeting Agenda Packet - Page 238 of 240 Page 7 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 6 b. Receive update on the most recent meeting of the Bay Area Clean Water Agencies (BACWA) Ms. Schectel provided an overview of the two BACWA meetings she attended and said she will be attending the annual BACWA meeting and the Regional Board meeting in December. COMMITTEE ACTION: Received the update. C. Receive annual update on Regulatory Compliance Ms. Schectel reviewed each item listed on the chart entitled '2017 Annual Summary of Key Regulatory Issues" included in the agenda packet and noted that blue text indicated updates and new information added to the chart since the last time she provided an update to the Committee. She acknowledged and commended Ms. Cheng for her assistance in creating and maintaining the chart. Regarding concern expressed by the Committee on Item AIR -5 (Portable Diesel Engine Regulation) and the effect on the San Ramon pump station bypass and lower Orinda and Moraga stations, Ms. Schectel assured she will consult with maintenance staff prior to removal or replacement of portable pumps to meet the regulation. Chair Causey mentioned that the section on the Federal Electronic Reporting Rule should include Collection Systems, Ms. Schectel assured she will verify requirements and amend the chart accordingly. Regarding Item Water -3 (Federal Dental Amalgam Rule), Mr. Potter stated that it applies to all amalgam generating dentists in the country including Central San's service area. Central San is not required to verify dentist's compliance with the Rule but the Rule does require Central San to receive one time certifications from dental facilities. Mr. Potter is active on the BACWA Pretreatment Committee that will be providing Dental Amalgam training at Central San and Union Sanitary District. Regarding Item Water -9 (Alkaline Hydrolysis/Biocremation), Ms. Schectel reminded the Committee they had requested information on this topic at a prior meeting. The Committee requested the update be provided now and not be brought back at a future meeting. Mr. Potter addressed this subject and explained that biocremation is an alternative to burial of animal remains used by veterinary and research facilities and for human remains in some other states. The process uses pressure, heat and caustic to dissolve tissue and the remains are discharged to the sanitary sewer system when separated from the bones. He said recently -adopted legislation allows biocremation for human December 7, 2017 Regular Board Meeting Agenda Packet - Page 239 of 240 Page 8 of 8 Real Estate, Environmental & Planning Committee Minutes November 27, 2017 Page 7 remains in California effective January 2020. This legislation would create licensing standards that require facilities to obtain a permit to discharge wastewater and provides that sanitary sewer agencies can opt to prohibit discharges in their service areas. He said there are no biocremation facilities currently operating in Central San's service area. Ms. Schectel said that a meeting is scheduled with Mr. Bailey to discuss this topic, as a veterinary clinic in San Ramon is evaluating Aquamation technology for animal remains. Staff responded to questions and concerns of the Committee regarding accidental releases, rate setting, hauling versus discharging, education and training, option to prohibit, and possible need to revise the District Code. The Committee directed staff to bring this matter back to the Committee only if noteworthy issues concerning this regulation arise. COMMITTEE ACTION: Received the information. 5. Announcements Mr. Bailey announced that the Board was sent information via email on the status of a Central San campus water quality issue. Staff is evaluating potential changes to the water system. Member Pilecki asked that potable water piping systems be reviewed at the pump stations as well. 6. Future scheduled meetings: Monday, December 18, 2017 at 9:00 a.m. 2018 Meeting Dates To Be Determined 7. Suggestions for future agenda items The Committee requested review and close out of the Parking Lot list be added to the next meeting agenda. 8. Adjournment — at 11:30 a.m. December 7, 2017 Regular Board Meeting Agenda Packet - Page 240 of 240