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Home My WebLink About10. Consider accepting Guiding Principles for future temporary diversion agreement with DERWA Page 1 of 32 Item 10. CENTRALSAN CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 TO: HONORABLE BOARD OF DIRECTORS FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES PHIL LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: CONSIDER GUIDING PRINCIPLES FORA FUTURE TEMPORARY DIVERSION AGREEMENT WITH DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) EAST BAY MUNICIPAL UTILITY DISTRICT (EBMUD) RECYCLED WATER AUTHORITY(DERWA) In January2017, Central San received a written request from DERWA to develop a memorandum of understanding to explore a pilot project to divert a portion of the raw wastewater from the San Ramon Pump Station from May through September every year. The wastewater would be diverted through DSRSD's existing collection system to DSRSD's treatment plant, for the purpose of producing and distributing recycled water to meet DERWA's peak summer irrigation demand. DERWA is making this request because it has a need for a temporary supplemental supply to help meet recycled water demands in the EBMUD and IDS RSD service areas until wastewater flows increase with development and other long-term supply options are identified. Staff has prepared the attached presentation, which contain Guiding Principles for a future agreement with DERWA regarding this requested diversion. Staff looks forward to receiving your direction on these proposed principles at the August 16, 2018, Board meeting. Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 3- Maintain a strong reputation in the community August 16, 2018 Regular Board Meeting Agenda Packet- Page 104 of 149 Page 2 of 32 GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifestyle GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability Strategy 1 -Augment the region's water supply ATTACHMENTS: 1. Presentation August 16, 2018 Regular Board Meeting Agenda Packet- Page 105 of 149 I GUIDING PRINCIPLES FOR A TEMPORARY DIVERSION AGREEMENT WITH DERWA Melody LaBella, P.E. Resource Recovery Program Manager Danea Gemmell, P.E. Planning and Development Services Division Manager - Board Meeting CIA- August 16, 2018 August 16, 2 Board Me PRESENTATION OVERVIEW • Background • Dublin San Ramon Services District (DSRSD) - East Bay Municipal Utility District (EBMUD) Recycled Water Authority (DERWA) Temporary Diversion Request • DSRSD • DERWA • Central San's San Ramon Pump Station Sewershed • Guiding Principles for an Agreement • Staff Recommendation , Questions & Board Input &Jh2 DERWA's TEMPORARY DIVERSION REQUEST • In January 2017, Central San received a written request from DERWA to develop a memorandum of understanding to explore a pilot project to divert a portion of the raw wastewater from the San Ramon Pump Station from May through September every year. • The wastewater would be diverted through DSRSD's existing collection system to DSRSD's treatment plant, for the purpose of producing and distributing recycled water to meet DERWA's peak summer irrigation demand . • DERWA is now making this request, because it has a need for a temporary supplemental supply to help meet recycled water demands in the EBMUD and DSRSD service areas until wastewater flows increase with development and other long-term supply options are identified. CENTRALSAN ' 3 PROPOSED DIVERSION • Would divert ~ 1 .3 MGD of the ~2 .5 MGD average dry weather wastewater flow through the San Ramon Pump Station • Would span up to 5 months of diversion to coincide with DERWAs peak summer irrigation demand • Would use the existing gravity intertie between Central San's and DSRSD's collection systems ' 4 NOW- 116- CENTRALSAN Regional YrewlSe"ke Area Map DSRSDi CCCSD S �°" CCCSD "a` "d 4 Torun d t)&AS[' 00 San areal Famcia I.)SRSII HERTY VALLEY Wastewater Service Area 1 ti • 10. 19 million gallons per day (mgd) annual SAN ON _ daily averagetA A` � W Paucs• I FTA /- • 9.7 mgd average dry weather flow (ADWF) • 12.3 mgd projected w ADWF at buildout a � T (2035) Water Service Area • 30% population Map Legend growth (2015-2035) OSRS1)flegonalWastewater Treatment Facility 0SRSID Winer Only Service Area !� DSRSD Wastewater Only Service Area 051351)Wastewater Treatment Under Contract I jF—We MRS Water&Wastewater Service Area -- Alameda Contra Costa County Dividing Line DSRSD Boundary 1v 5 CENTRALSAN Map features ® Pump Station East Bay Dischargers Authority Wastewater Treatment Plant Effluent Disposal System Dechlorination Facility LAVWMA Export Pipeline 16-0 Diffuser "' Livermore Pipeline �a5 San Leandro Plant and Effluent Pump Station Bay Outfall and LAVWMA Pump Station Livermore Wastewater Diffuser Treament Plant WTP Marina Dechlorination Facility D n �, WTDSRSD Wastewater ,. ^ Hayward Effluent Pump Station Treament Plant Oro Loma-Castro Valley Plant and Effluent Pump Station WiP Hav%t(a i lhusli Hayward Treatment Facility Alvarado Treatment Facility and Effluent Pump Station WTP E AS•7 ?80� 0 1 2 4 Miles 6 DERWA • DERWA created the San Ramon Valley Recycled Water Program (SRVRWP) in 1995 and began delivering recycled water in 2006 . • Being implemented in several phases within DERWNs existing service areas • Future phases will extend recycled water into other parts of the San Ramon Valley, depending on supply and demand and capital funding needs and availability. 116- CENTRALSAN1 SRVRWP • Designed to provide: • Up to 3,696 acre-feet (> 1 billion gallons) per year of recycled water to DSRSD's service area • Up to 2,688 acre-feet (>875 million gallons) per year of recycled water to EBMUD's service area • It has been known since inception that DERWA would face supply shortages • DERWA first evaluated the concept of diverting Central San's raw wastewater flow in 2004 DERWA San Ramon Valley Recycled Water Program Current racllltles Location Map (April ZW6) EBMUD Service Area 7--7--- r.,m r,.yw. 4 wmvuio.hr�jwee o n —I,FMM s� P.M x0, ` —I - DSRSD r y. J Service Area r � I 1MSA Fti r j tr Pleasanton f" Service Area MMM 11h9L IL RACENTLSAN DERWA PEAK DAY RECYCLED WATER DEMAND VS , DSRSD WASTEWATER SUPPLY Recycled Water Demand Versus Supply Peak Demand Peak Days Projected to 16.00 Exceed Supply b pp Y Y 14.00 -5 MGD by 2022 20.00 5.00 6.00 1,ou 2.00 o.ao 7011 2018 2019 2020 2021 2022 N....nt- MUD �OSRSD —Sup* Source: DSRSD 10 DERWA's RECYCLED WATER SUPPLY SHORTFALL STRATEGIES 1 . Potable addition during peak demands (within State guidelines during drought conditions) 2 . Demand management — voluntary or mandatory cutbacks, timing shifts for big users, pricing to reflect scarcity, switch users back to potable 3. Connection moratorium 4. Central San diversion (temporary - a five-year agreement to divert 1 . 3 MGD starting next summer is currently being considered ) DERWA's RECYCLED WATER SUPPLY SHORTFALL STRATEGIES (CONTINUED) 5. Livermore connection (temporary) 6 . Groundwater pumping (though this supply has serious quality issues) 7 . Groundwater storage (long term) 8 . Other sources (such as East Bay Dischargers Authority, though quite expensive) N it -Z F11 -{14 4 xl T, IJ !' � 4� ' ` 10 5 PIS San Ram c)n Pump Statim Ce ntral San Bou-dary San Ramon Pump Station San Ram on City Limit r _ DSRSE)Wastewater Only Service Area - DSRSD Water Only Service Area DSRSD NTRALSAN San Ramon Pump Station Sewershed Cen rRa,��;�r,rkr,ec}s a sar,�rwer oarrr�er _..._..�.-----,------.�_......__......._ CENTRAL SAN RESIDENTIAL UNIT EQUIVALENTS ( RUES Service Sewershed Area Area Current Residential 136,663 15,551 Non-residential 30,006 11604 Subtotal 166,669 173155 Projected additional RUEs ( 12 years) 51261 Total at Buildout 223416 Total Capacity Fees through 2030 $43)9001000 6 f ` 14 �;2ft R CENTRALSAN ANNUAL REVENUE 1=1 Service Area Sewershed Area Sewer Service Charge $ 9570007000 $ 977787210 Ad Valorem Tax $ 1678287591 $ 17732, 142 Capacity Fees $ 615007000 $ 37700,000 Misc. (Permits, inspections, etc.) $ 673587696 $ 6547491 . - LIM 20`S R 15 NOW L CENTRALSAN '. . FIXED AND VARIABLE O&M COSTS Sewershed Service Are Area Fixed O&M Cost (Annual ) $83,078,356 Variable O&M Cost $ 6,651 , 100 (Annual) Variable O&M Cost (5-month Diversion Period) � 243,348 "—""..�.. 16 N��'s:2t�P& Regeiei seals u�eeniig r�geiiee i eei�e� i age rr i et lye _ ' Mme—'' CENTRALSAN GUIDING PRINCIPLES FOR AN AGREEMENT 1 . No Adverse Financial Impact to Central San 2. No Adverse Financial Impact to Concord and Clayton 3. Consistency with Existing Bond Covenants 4. Consistency with Proposition 218 5. Community Support 6. Temporary Nature 7. Mitigation of Technical and Operational Impacts 8. Benefits to Central San Customers 9. Facilitate a Sustainable Solution to the Region's Water ,1\ Supply Shortage GUIDING PRINCIPLE 1 NO ADVERSE FINANCIAL IMPACT TO CENTRAL SAN • No additional operational cost to Central San • Revenues (including Ad Valorem Tax, capacity fees, sewer service charges) will not be shared to the extent they are used to recover 100% of Central San's systemwide fixed cost. • Variable costs will be assessed and revenues collected to cover these costs may be shared . • Any fines from overflows caused by the diversion will be reimbursed by DERWA. � 18 GUIDING PRINCIPLE 2 NO ADVERSE FINANCIAL IMPACT TO CONCORD AND CLAYTON • The City of Concord and Town of Clayton provide -$24M annually in revenue. • Concord's annual bill is based on their proportional share of flow at Central San's treatment plant. • A diversion from Central San's collection system will reduce Central San's flow to the treatment plant, which causes an increase in Concord and Clayton's proportional share. • The requested wastewater flow equates to an -$300 ,000 annual increase to Concord and Clayton , if not adjusted . 6, Gve 1k*i— - ' 19 GUIDING PRINCIPLE 3 CONSISTENCY WITH EXISTING BOND COVENANTS • Central San will not de-annex any portion of its service area for the sake of implementing this temporary diversion . • Central San will not share any revenues associated with the area served by the San Ramon Pump Station , to the extent those revenues are used to cover Central San's systemwide fixed costs. Zro 112 GUIDING PRINCIPLE 4 CONSISTENCY WITH PROPOSITION 218 • There are concerns that the collection of revenues to cover the transportation and treatment of wastewater from customers within the subject area may be at risk for a Prop 218 challenge, to the extent that those customers do not benefit from Central San's downstream conveyance and treatment facilities and their associated cost. • Any Prop 218 challenge will be grounds for termination of agreement. � 21 GUIDING PRINCIPLE 5 COMMUNITY SUPPORT • Community support is essential for the successful information of this project, including the following : • Central San customers • City of Concord and Town of Clayton • The adjoining San Ramon Pump Station neighborhood • City of San Ramon • San Ramon Valley Unified School District • East Bay Regional Park District GUIDING PRINCIPLE 6 TEMPORARY NATURE • Central San is in the middle of a Memorandum of Understanding with Contra Costa Water District and Santa Clara Valley Water District regarding a recycled water exchange project. • To the extent this is proven viable, Central San may need this wastewater supply to meet this and other existing recycled water commitments, so Central San retains the right to the requested wastewater flow. A&&2323 GUIDING PRINCIPLE 7 MITIGATION OF TECHNICAL AND OPERATIONAL IMPACTS • No damage to Central San's infrastructure during the diversion • Maintain minimum amount of wastewater flow to prevent solids from settling in Central San's collection system • Mitigation of any significant increased potential for odors or overflows • Installation of an appropriate meter to measure diverted flow, with frequent meter calibration ' 24 GUIDING PRINCIPLE 8 BENEFITS TO CENTRAL SAN CUSTOMERS • The wastewater temporarily diverted from Central San's service area will be available to Central San's service area as recycled water. ga�e uheeniiggeiiee i eeiei ege gee et iye _ ' 25 GUIDING PRINCIPLE 9 FACILITATE A SUSTAINABLE SOLUTION FOR THE REGION 'S WATER SUPPLY SHORTAGE • Central San understands the water supply concerns/need within the Bay Area . • Central San will work with agencies/stakeholders within the region to: • Facilitate the most optimal solution to collect and treat wastewater within its service area • Distribute such treated effluent for the benefit of its customer base and the greater region ik:� ZTV 112 GUIDING PRINCIPLE 9 (CONTINUED FACILITATE A SUSTAINABLE SOLUTION FOR THE REGION 'S WATER SUPPLY SHORTAGE • There are several recycled water projects, which , collectively, may achieve this overarching goal : • Zone 1 • Concord Community Reuse • Diablo Country Club Satellite Water Recycling Facility • Refinery Recycled Water Exchange Project • The Exchange Project represents the potential , for the most optimal regional solution . &z7 CENTRAL SAN , CONTRA COSTA WATER DISTRICT & SANTA CLARA VALLEY WATER DISTRICT WATER EXCHANGE CONCEPT Martinez ' I Refineries � u u �• iy 22 TAFY Transfer-Bethany AP Pipeline 22 TAFY 22 TAFY (proposed) Santa Clara Valley Water District CCWD *TAFY = thousand acre-feet per year Expanded **CVP = Central Valley Project Los Vaqueros ` 28 CENT■ STAFF RECOMMENDATION Accept these guiding principles or provide additional direction to staff f 29 NOW CENTRALSAN QUESTIONS AND BOARD INPUT