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HomeMy WebLinkAbout03.a. Follow-up to question asked at the July 24, 2018 meeting regarding check expenditures Page 1 of 8 Item 3.a. Central Contra Costa Sanitary District August 21, 2018 TO: FINANCE COMMITTEE FROM: TODD SMITHEY, FINANCE ADMINISTRATOR REVIEWED BY: PHIL LEI BER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY GENERAL MANAGER SUBJECT: FOLLOW-UP TO QUESTION ASKED AT THE JULY 24, 2018 MEETING REGARDING CHECK EXPENDITURES At the July 24, 2018 Finance Committee meeting, a question was asked regarding the following check. This memo presents a summary of the status of that question. Check#219906 ACME Fill Corporation $1,259.76 This is the second check issued for the accrued interest on a cash deposit made in the amount of $50,092.79 dated November 10, 2011, required under the October 20, 2011 Position Paper(7.a.), to authorize the General Manager to execute a permit contract with Acme Fill Corporation for discharge of treated landfill leachate. This interest payout was for the period of February 2, 2015 through May 1, 2018 at the monthly LAI F rate. See Attachment 1 for the authorization Position Paper and Attachment 2 for the check back-up documentation. Strategic Plan Tie-In GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs ATTACHMENTS: 1. October 20, 2011 Position Paper(7.a.) 2. Back-up documentation for Check#219906 August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 3 of 177 Pan2of8 achment 1 Central Contra Costa Sanitary District BOAR[ OF DIRECTORS POSITION PAPER Board Meeting Date: October 20, 2011 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PERMIT CONTRACT WITH ACME FILL CORPORATION FOR DISCHARGE OF TREATED LANDFILL LEACHATE Submitted By: Initiating Dept.Xiv.: Timothy Potter, Environmental Compliance Engineering/Environmental Services Superintendent REVIEWED AND RECOMMENDED D FOR B aA Ra A C "IDN: T.Potter A.Farrell K.Aim James .Kelly General anagen ISSUE: Wastewater Discharge Permit Contracts for Class I Industrial Users must be approved by the Board of Directors. • RECOMMENDATION: Authorize the General Manager to execute a 3-year Permit Contract with Acme Fill Corporation for discharge of treated leachate through October 31, 2014. FINANCIAL IMPACTS: No adverse financial impacts are anticipated from entering into this contractual agreement with Acme. Source Control, laboratory, and legal costs will be recovered as billable activities. Treatment plant and collection system costs will be recovered through the Sewer Service Charge. ALTERNATIVES/CONSIDERATIONS: Two alternatives to the proposed Permit Contract were considered: 1) discontinue accepting the treated leachate; or 2} continue with the previous agreement that mandated the use of Powdered Activated Carbon (PAC) as part of the treatment process. Neither alternative is preferred by Acme Fill Corporation, and because Acme Fill Corp. has limited options to properly dispose of the landfill leachate, staff has been working with therm to develop an agreement that meets both parties' needs. BACKGROUND: Acme's pretreated landfill leachate has been accepted by the District since the early 1990s, and through permit contracts since 1904. A permit contract was used torotect the District and to preserve the right to modify the discharge conditions p or stop receiving the treated leachate. The District chose to receive the leachate after encouragement from the Regional Water Quality Control Board (RWQCB) because the District's acceptance of the leachate under strict conditions provided the best regional environmental solution. . The term of the current Permit Contract was extended twice at Acmes request to allow time to a complete stud of the effects of eliminating the use of Powered Activated - Carbon Y Carbon PAC within the treatment processes of-the Leachate Treatment Plant (LTP). N:IENVRSEmposition PaperslPotteF\20111GM Sign Acme 3 Yr contract 10-20-1 i.doc Page 1 of 3 August 21, 2.018 Regular FINANCE Committee Meeting Agenda Packet- Page 4 of 177 Page 3of8 POSITION PAPER . Board Meeting date: October 20, 2011 subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PERMIT CONTRACT WITH ACME FILL CORPORATION FOR DISCHARGE OF TREATED LANDFILL LEACHATE PAC was required b the LTP because it addressed operational problems that were q Y encountered with the LTP in 1994. Acme requested the PAC special study to determine if PAC could be removed from the LTP treatment processes to substantially reduce the cost of operating the LTP including the cost of PAC, reduced volume of hazardous waste in LTP solids transported off-site, and lower hazardous waste taxes due to reduced volume of sludge. Addition of PAC to the LTP stopped in November 2010. Monitoring of the LTP effluent identified that removal of pollutants of concern (e.g. mercury, PCBs, dioxin compounds, organic compounds) did not appear to decline with the removal of PAC. However, there were two limit violations: ammonia in February 2011 and mercury in July 2911. These were the first violations for these pollutant parameters since Permit Contracts were used to authorize the LTP discharges in 1994. Notices of Violation (NOVs) were issued for both of these limit violations. Acme responded to both citations identifying concerns about the analytical quality of the data. The district will monitor the monthly effluent data submitted by Acme to ensure a trend does not develop with regards to increased ammonia or mercury in the discharge. The proposed Permit Contract-maintains the protections in the previous Permit Contract, addresses certain changes requested by Acme representatives to reduce their compliance costs, and includes modifications in response to the PAC special study. District staff believes these changes are acceptable and do not significantly increase the risk to our facilities from the Acme discharge. The proposed Permit Contract contains the following significant changes over the current Permit Contract: ■ The requirement to use PAC in the treatment processes of the LTP is removed resuming in significant cost savings to Acme; • The self-monitoring program required of Acme is modified to reduce the self- monitoring frequency for certain pollutant parameters based on review of historic data; • The self-monitoring.program required of Acme is modified to increase the arameters to include PCBs and dioxin compounds analyzed using high resolution analytical methods. The District currently has dioxin limits and PCB monitoring requirements in our NPDES permit and as such is it important to understand the potential contribution from Acme of these constituents. The frequency of Whole Effluent Toxicity (WET) testing is increased from annually to semi-annually to provide for dry and wet season monitoring without the PAC treatment and to ensure that Acme is not contributing any form of toxicity to our process; N:1 TR C1Position Papers\Potterl2011IGM Sign Acme 3 Yr Contract 10-20-1 I.doc Page 2 of 3 Au us�2118 Regular FINANCE Committee Meeting Agenda Packet- Page 5 of 177 g � g g g g Page 4 of 8 POSITION PAPER Board Meeting Date: October 20, 2011 subject:AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PERMIT CONTRACT .WITH ACME FILL CORPORATION FOR DISCHARGE OF TREATED LANDFILL LEACHATE • The reduction in the required certificate of Deposit amount from $150,000 to $50,000 that was approved during the 3/18110 extension is incorporated. As with the previous Permit contract, the proposed Permit contract includes conditions that allow the District to change the leachate monitoring parameters or effluent limits to protect District facilities and operations or to meet new-regulatory requirements. The District also has the right to suspend or terminate the leachate discharge if acceptance of the treated leachate affects the District's ability to meet N PDES limits, results in the District's treatment plant being classified as a hazardous waste treatment facility or affects the District's ability-to reclaim water. Negotiations with Acme regarding the above modifications to the Permit contact have occurred. Acme expressed concern about the increased monitoring costs associated with the high resolution analytical methods for PCBs and Dioxin compounds, and increased toxicity testing. Staff believes the recommended action is appropriate to ensure protection of our treatment process and compliance with our discharge requirements. Staff was continuing to negotiate with Acme as the agenda packet was finalized. Any updates will be provided at the Board meeting. . Staff has concluded that approval of this contract is exempt from the California Environmental Quality Act (CEQA). 'District CEQA Guidelines Section 15308 provides an exemption where a-regulatory agency which is authorized by state or local ordinance to assure the maintenance or protection of the environment takes action to affect such a purpose. The execution of a Permit contract with Acme Fill corporation is intended to maintain andp rotect the waters and other aspects of the environment. Approval of this contract will establish the Board of Directors' independent finding that this contract is exempt from CEQA. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute the proposed Permit contract with Acme Fill corporation for discharge of treated landfill leachate from the Acme Landfill located in Martinez, California through October 31, 2014. N:1 VR l 'tion Pa IP �ee�p 1 1GM Sj n Acme 3 Yf Contract 4-Z0-11.doc Page 3 of 3 Au usPf1, 0 � e ulap1NANCE Commitee Meeting Agenda Packet- Page 6 of 177 g g g g g Attachment 2 Check No. 219906 Date Invoice Description Amount Number 06/26/18 INTEREST 6/18 INTEREST ON CASH DEPOSIT 15259.76 ACME FiLL CORPORATION 10 1,X59.76 Date Fund Check NO. Amount Central Contra Costa Sanitary District 06/2912018 3406 219906 1,259.76 5019 Imhoff Place,Martinez,,CA 94553-4392 WELLS FARO BANK,MARTINEZ,CA 11-24125 121 D(M PAY ONE THOUSAND TWO HUNDRED FIFTY NINE AND 76,1100 DOLLARS ACME FILL CORPORATION GENERAL MANAGER To P.O. BOX 1 ]08 SECRETARY The MARTINEZ CA 94553 Order Of DEPUTY COUNTY AUDITOR THIS CHECK VOID 6 MONTHS AFT-EF;DATE OF ISSUE lie 3 L,0 C3 2 1 q 9 0 E 11m 1: 1 2 10 D C3 2 4&1: 42 2 S 0 2 7 6 14 110 August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 7 of 177 KHRM Central Contra Costa Sanitary District Payment o ri i on XEIVEb Pay to: Name- Acme Fill Corporation JUN 2 2 2r- Company: Acme Fill Corporation CCCSD SOURCE CONTROL Address: P.O. Box 1108 City: Ma rti nez State: CA Zip Code- 94553 Amount: $1)259.76 Date Desired- 6/29/2018 Give Check to: Mail Description: Release of Interest from Cash Deposit req u i red under 10/20/11 Po s iti o n Paper (7.a.); Principal rolled over to new agreement Original Deposit Amount-. $50,092.79 Date Deposited- 11/10/2011 % of Principal to be Released, 0.00% Amount of Principal to be Released $0.00 Account No. Amount Customer Number: 692 MID 00 1-0000-223.35- (Mise Deposit) $0.00- 001-0000-6300.45- o (interest income) $19259.76 Total $19269.76 Initiated by: 6/21/2018 Date Signatur Approved by, 4C &I n at u re Date Approved by. VS[gnature _j Date Attachments* 1 Interest Calculation Sheet 2) PMIA Average Monthly Effective Yields (http-//www,treas,urer.ca.gov/`pmia-laif/historical/avg_mn_ylds,pdf 3) Printout & date H.T.E. Customer Balance Sheet (Screen 7) August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 8 of 177 Payment AuThorzation CENTRAL CONTRA COSTA SANITARY DISTRICT Interest Calculation for: Acme Fill Corporation Release of Interest from Cash Deposit required under 10120/11 Position Paper(7.a.); Principal rolled over to new agreement Month Number of Interest Principal (End Date for Days Interest Daily Earned/ Received/ Balance Interest Accrual) (Previous Month) Rate(LAIF) Rate Paid Out Paid Out 1111012011 ----- $50,092.79 $50,092.79 12/1/2011 20 0.401% 0,0011% $11-01 $50.,103,80 1/1/2012 31 0,3K% 0.0010% $16.26 $50,120.05 2/1/2012 31 0,385% 0.0011% $16,39 $50,136.44 3/1/2012 29 0.339% 0.0011% $15.50 $50,151.94 4/1/2012 31 0-383% 0.0010% $16.31 $50,168,25 5/1/2012 30 0.367% 0.0010% $15.13 $50,183.38 6/1/2012 31 0.363% 0.0010% $15.47 $50,198.85 7/1/2012 30 0.358% 0.0010% $14-77 $50,213.63 8/1/2012 31 0.363% 0.0010% $15.48 $50,229.11 9/11/2012 31 0.37 7% 0.0010% $16.08 $50,245.19 10/1/2012 30 0,348% 0.0010% $14-37 $501259.56 11/1/2012 31 0,340% 0.0009% $14.51 $50,274.07 12/1/2012 30 0.324% 0,000910 $13,39 $50,287.46 1/1/2013 31 0.326% 0,0009% $13.92 $50,301.39 2/1/2013 31 0.300% 0,0008% $12-82 $50,314.20 3/1/2013 28 0.286% 0.0008% $11.04 $50,325.24 4/1/2013 31 0,285% 0,0008% $12,18 $50,337.42 5/1/2013 30 0.264% &0007% $10.92 $50,348.35 6/1/2013 31 0.245% 0.0007% $10.48 $50,358.82 7/1/2013 30 0,244% 0.0007% $10.10 $50,368.92 8/1/2013 31 0.267% 0,0007% $11,42 $50,380-34 9/1/2013 31 0-271% 0.0007% $11.60 $50,391.94 10/1/2013 30 0.257% 0.0007% $10,64 $50,402.58 11/1/20,13 31 0.266"/o 0.0007% $11.39 $50,413-97 12/1/2013 30 0.2639/o 0,0007% $10-90 $50,424.87 1/1/2014 31 0,26401 0.0007% $11.31 $50,436.17 2/1/2014 31 0,244% 0.0007% $10.45 $50,446.63 3/1/2014 28 0.2,361 0.0006% $9.13 $50,455.76 4/1/2014 31 0.236% 0.0006% $10.11 $50,465.87 5/1/2014 30 0.233% 0M06% $9.66 $50,475.54 6/1/2014 31 0,22810 0,0006% $9.77 $50,485.31 7/11/2014 30 0.228% 0,0OM% $9.46 $50,494.77 8/1/2014 31 0.260% 0.0007% $11.15 $50,505,92 9/1/2014 31 0.246% 0,0007% $10,55 $50,516.47 10/1/2014 30 0.261% 0,0007% $10.84 $501,527.31 11/1/2014 31 0.261% 0.0007% $11,20 $50,538.51 12/1/2014 30 0.267% 0.0007% $11-09 $50,549.00 1/1/2015 31 0.262% 0.0007% $11,25 $50,560.85 2/1/2015 31 0.266% 0.0007% $11.42 ($479.48) $50,092.79 August 21, _ 3/1%2015 28 4/1/2015 31 5/1/2015 30 6/1/2015 31 7/1/2015 30 8/1/2015 21 9/1/2015 31 10/1/2015 30 0357% 0.0010% $1472 $50,196.52 11/1/2015 31 12/1/2015 %D 1/1/2016 31 2/1/2016 31 3/1/2018 29 4/1/2016 31 5/1/2016 30 6/1/2016 31 7/1/2016 30 8/1/2018 31 9/1/2016 31 10/1/2016 30 11/1/2016 31 12/1/2016 30 1/1/2017 31 2/1/2017 31 3/1/2017 28 4/1/2017 31 5/1/2017 30 8/1/2017 31 7/1/2017 30 8/1/2017 31 8/1/2017 31 101/2017 30 11/1/2017 31 12/1/2017 30 1/1/2018 31 2/1/2818 31 3/1/2018 28 4/1/2018 31 | 5/1/2018 | 30