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HomeMy WebLinkAbout04. Authorize temporary Wastewater Diversion Agreement with DERWA Page 1 of 29 Item 4. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JANUARY 17, 2019 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TEMPORARY WASTEWATER DIVERSION AGREEMENT WITH THE DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) - EAST BAY MUNICIPAL UTILITY DISTRICT (EBMUD) RECYCLED WATER AUTHORITY(DERWA) SUBMITTED BY: INITIATING DEPARTMENT: MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES- PROGRAM MANAGER PDS-RESOURCE RECOVERY REVIEWED BY: RUSS LEAVITT, ENGINEERING ASSISTANT III JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The Board of Directors' (Board) authorization is required for the General Manager to execute certain agreements on behalf of Central San. BACKGROUND In January 2017, Central San received a letter from the Dublin San Ramon Services District (DSRSD)— East Bay Municipal Utility District (EBMUD) Recycled Water Authority (DERWA) requesting development January 17, 2019 Regular Board Meeting Agenda Packet- Page 18 of 59 Page 2 of 29 of a memorandum of understanding (MOU)to explore a potential partnership and pilot project to divert a portion of the raw wastewater from Central San's San Ramon Pumping Station between May and 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. According to the letter, DERWA made this request due to the 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 options are identified. Throughout 2017 and 2018, Central San staff worked with DSRSD staff to evaluate diversion options, in addition to having internal discussions with Central San's Engineering and Operations staff on how the potential diversion could impact Central San's operation and future recycled water projects, and how to potentially mitigate those impacts. On August 16, 2018, staff presented nine "Guiding Principles" for a Temporary Wastewater Diversion to DERWA to the Board, which were approved by a majority of the Board. Staff has since worked with DERWA staff to develop and refine the attached agreement for execution by both parties, which will allow for a temporary diversion of wastewater from Central San's San Ramon Pumping Station for a period of three years, with two possible one-year extensions by mutual written agreement of the parties. CEQA On May 2, 2018, as the Lead Agency, DERWA determined that the project is exempt from California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301, Existing Facilities, and Section 15303, New Construction or Conversion of Small Structures. A Notice of Exemption was filed with the Contra Costa County Clerk on May 11, 2018. As a Responsible Agency, Central San has reviewed and considered the information contained in the Notice of Exemption. ALTERNATIVES/CONSIDERATIONS The Board could consider not approving this Agreement (Attachment 1 Draft). FINANCIAL IMPACTS As this project will be funded by DERWA, there are no anticipated financial impacts to Central San. COMMUNITY OUTREACH Central San and DERWA representatives held an Open House Community Meeting on the project on Wednesday, December 12, 2018, from 5:00 to 7:00 p.m. at the Alcosta Senior and Community Center in San Ramon. There were 15 agency representatives and 12 members of the public present. Most attendees left satisfied with the information they received. There were a few individuals that used this opportunity to express their continued concern about the overflow that happened at the San Ramon Pumping Station 20 years ago and that Dougherty Valley's wastewater flow travels through their neighborhood. Additional information on the Open House event is included in staff's presentation on this item. COMMITTEE RECOMMENDATION The Real Estate, Environmental & Planning Committee reviewed this item at its November 14, 2018 meeting, and the Committee was split on this matter with Chair Causey in support and President Nejedly opposed. RECOMMENDED BOARD ACTION Authorize the General Manager to execute a temporary wastewater diversion agreement with DERWA. January 17, 2019 Regular Board Meeting Agenda Packet- Page 19 of 59 Page 3 of 29 ATTACHMENTS: 1. Final Draft Agreement 2. Presentation January 17, 2019 Regular Board Meeting Agenda Packet- Page 20 of 59 Page 4 of 29 Final Draft 12/19/2018 AGREEMENT FOR THE TEMPORARY DIVERSION OF WASTEWATER BETWEEN DUBLIN SAN RAMON SERVICES DISTRICT—EAST BAY MUNICIPAL UTILITY DISTRICT RECYCLED WATER AUTHORITY AND CENTRAL CONTRA COSTA SANITARY DISTRICT This Agreement for Temporary Diversion of Wastewater between the Dublin San Ramon Services District—East Bay Municipal Utility District Recycled Water Authority(DERWA) and Central Contra Costa Sanitary District (Central San) ("Agreement") is made and entered into this day of , 2019. DERWA and Central San are individually referred to as "Party," and collectively as "Parties." WITNESSETH WHEREAS, DERWA, a joint powers authority of Dublin San Ramon Services District (DSRSD) and East Bay Municipal Utility District (EBMUD), has a temporary need for supplemental wastewater influent to serve as a source for tertiary-treated recycled water throughout the EBMUD and DSRSD service areas; and WHEREAS, DSRSD provides potable and recycled water to the Dougherty Valley portion of the City of San Ramon and wastewater collection and treatment to the southernmost portion of the City of San Ramon, and EBMUD provides potable water to all other areas of the City of San Ramon and recycled water to a portion of the City of San Ramon; and WHEREAS, Central San provides wastewater collection, treatment, and disposal services to a major portion of the City of San Ramon, including the Dougherty Valley and has the temporary ability to redirect some of its wastewater to the DSRSD collection system; and WHEREAS, DERWA has requested to temporarily divert a portion of Central San's wastewater upstream of the San Ramon Pumping Station to serve as a source for the production of tertiary- treated recycled water at DSRSD's treatment plant to help meet immediate recycled water demands in the EBMUD and DSRSD service areas while long-term supply options are identified; and WHEREAS, Central San has completed a "Wholesale Recycled Water Opportunities Study"to identify potential large-scale recycled water projects at its main treatment plant with year-round demand that will maximize the beneficial use of its wastewater; and WHEREAS, Central San, Contra Costa Water District(CCWD) and Santa Clara Valley Water District (SCVWD), are currently evaluating the feasibility of implementing the Refinery Recycled Water Exchange Project, in which Central San would provide, all year round, 20 million gallons per day(MGD) of recycled water to CCWD to serve to the Martinez refineries 1 January 17, 2019 Regular Board Meeting Agenda Packet- Page 21 of 59 Page 5 of 29 Final Draft 12/19/2018 and the freed up water supply would be transferred to SCVWD through a water exchange with CCWD; and WHEREAS, if the Refinery Recycled Water Exchange Project moves forward in the future, Central San will need all the dry weather wastewater flow available in its service area at the time of implementation in order to reliably serve the project, in addition to other existing recycled water commitments; and WHEREAS, Central San is interested in partnering with DERWA and its member agencies, during the term of this Agreement, to provide a temporary wastewater supply, at no cost or impact to Central San ratepayers, as a short-term measure to allow DERWA and its member agencies more time to develop long-term solutions for providing recycled water to the DERWA service area; and WHEREAS, DERWA seeks, during the term of this Agreement, to receive and treat wastewater from Central San's service area, originating from a portion of the City of San Ramon, to serve as a source of recycled water supply for DERWA during peak summer recycled water demands; and WHEREAS, at their August 16, 2018, meeting, the Central San Board of Directors adopted nine Guiding Principles for a temporary wastewater diversion agreement with DERWA, which are included in Exhibit B of this Agreement. NOW, THEREFORE, in consideration of the recitals and mutual obligations herein expressed, DERWA and Central San agree as follows: I. PURPOSE 1. The purpose of this Agreement is to set forth the terms, conditions and responsibilities of the parties for the design, construction and operation of a"Temporary Wastewater Diversion Project" (Project). 2. This Agreement is intended, as a short-term arrangement, to provide DERWA an as- needed temporary wastewater supply from the Central San service area to address their peak summer demand shortage. 3. This Agreement is not intended to provide for Central San to make available a permanent wastewater supply to DERWA, nor does this Agreement require any negotiations between Central San and DERWA for a long-term supply agreement. 2 January 17, 2019 Regular Board Meeting Agenda Packet- Page 22 of 59 Page 6 of 29 Final Draft 12/19/2018 II. GOOD FAITH, COOPERATION,AND SCHEDULE 1. Conditioned upon DERWA's funding of the expenses associated with design and construction of the Project, DERWA and Central San commit to diligently and in good faith cooperate towards the beneficial use of the Project. 2. Central San is committed to allowing diversion of available raw wastewater flow for the Project, with the understanding that the Central San's first priority is the safe and effective operation of Central San's wastewater collection system and San Ramon Pumping Station, which includes avoiding overflows, odor generation, and damage to Central San's infrastructure. As such, the Project will be designed, constructed, and operated to minimize disruption to Central San's operation. 3. The Parties agree to cooperate and work diligently to complete the Project and have it operational by the summer irrigation season of 2019. 4. DERWA will be responsible for all costs to prepare environmental documentation, obtain required permits, design, construct, operate, and maintain the Project, including those Central San costs identified as attributable to the operations and maintenance of the diversion structure and the modifications to the San Ramon Pumping Station. 5. Central San and DERWA shall work cooperatively to review and determine the Central San costs proposed to be paid by DERWA. 6. The Parties may form a technical committee or committees in order to ensure operational impacts to Central San are minimized and to determine and agree upon any costs incurred or claimed by Central San as a result of the Project. 7. At DERWA's request, DSRSD, pursuant to its agreements with DERWA, may act as its agent to prepare environmental documentation, obtain required permits, design, construct, operate, and maintain the Project. III. TERM While effective as of the date first written above, the initial term of this Agreement shall be for a period of three (3) years beginning from the date of Central San acceptance of the construction of the diversion structure and associated pipelines. This Agreement may be renewed for successive one (1) year terms by mutual written agreement of the Parties hereto, executed not less than three (3) months prior to the expiration of the Initial Term or any Renewal Term, as applicable. Under no circumstances shall this Agreement, exceed a total period of five (5) years, including pursuant to any amendment or extension terms provided for herein. Any period longer than that timeframe would constitute a more permanent diversion, which is outside the purview of this agreement. A new agreement would have to be negotiated and executed at such time, if so desired by both parties. 3 January 17, 2019 Regular Board Meeting Agenda Packet- Page 23 of 59 Page 7 of 29 Final Draft 12/19/2018 IV. WASTEWATER DIVERSION PROJECT A.Description The Project will divert raw wastewater from the Central San collection system upstream of Central San Manhole 11 as shown on Exhibit A, which is attached hereto and incorporated herein by this reference. The facilities to be constructed and utilized include but are not limited to a concrete vault, approximately 60 feet of new gravity sewer and associated valves and flow meter. B.Design and Construction 1. During the preliminary evaluation and preliminary design for this diversion project, several improvements were determined to be required to implement the diversion and operate the San Ramon Pumping Station in a reduced-flow mode. These improvements included the replacement of a small variable speed pump to operate a lower flow regime in the pumping station, and for the diversion box, motor-operated gates, high level alarm, and flowmeter as well as connection to the pumping station's control and SCADA system. However, due to the short term nature of this Agreement, these facility modifications would be more appropriate for a long-term agreement and will not be made as a result of this Agreement. In the event operational difficulties arise due to the initial configuration, the Parties will meet and confer to discuss any required modifications to mitigate the operational difficulties. 2. The Parties agree to work cooperatively and diligently to complete the Project design and construction. 3. DERWA shall lead the design of the Project and confirm the required Project facilities and facility modifications with review and input from Central San. 4. The Project shall be designed and constructed,under DERWA's lead, to minimize impacts to Central San's wastewater collection and treatment systems, and San Ramon Pumping Station. 5. Central San shall provide available information, including sewer flows, controls scheme for the San Ramon Pumping Station, record drawings of the San Ramon Pumping Station and collection system, and other available information as requested. 6. If required pursuant to Section IV.13.1 above, the design and construction of any required modifications to the San Ramon Pumping Station (i.e.; replacing a small capacity pump and replacing the control system programming for the wet well controls) will be led by Central San and reimbursed by DERWA. 7. DERWA will be responsible for all permits and acquiring any rights-of-way, easements, or licenses required to construct the Project. 4 January 17, 2019 Regular Board Meeting Agenda Packet- Page 24 of 59 Page 8 of 29 Final Draft 12/19/2018 C. California Environmental Quality Act 1. DERWA will be the lead agency responsible for Project compliance with the California Environmental Quality Act(CEQA) in cooperation with Central San as a responsible agency. 2. The Parties agree to work cooperatively to ensure Project compliance with CEQA. D.New Facility Ownership 1. Upon completion and acceptance of the Project's construction, Central San shall own the vault and all the facilities within it. DSRSD shall own the new pipeline. Central San may only divert wastewater into the DSRSD pipeline as a part of this Agreement or the existing overflow agreement between Central San and DSRSD. 2. At the completion of this agreement, the constructed facilities will be owned by the agencies as described above. Each agency will have the discretion to decide whether to leave the facilities in place or to demolish them. V. WASTEWATER DIVERSION PROJECT OPERATIONS A.Diversion Operations 1. The Project will be operated to minimize operational impacts to Central San's collection and wastewater treatment systems. DERWA will cooperate with Central San in order to minimize potential impacts. 2. When DERWA requires additional supplies pursuant to and during the term of this Agreement, DERWA will request that DSRSD divert wastewater flows from the Central San collection system to the DSRSD collection system for conveyance to the DSRSD Regional Wastewater Treatment Plant for secondary and tertiary treatment on behalf of DERWA. 3. In order for Central San to maintain a stable operation, the wastewater diversion shall not be intermittent. DERWA will provide advance notice, as defined below, of the need to begin diverting from Central San's collection system to meet its peak summer irrigation demand. When DERWA no longer requires use of Central San wastewater flows pursuant to this Agreement to meet its peak summer irrigation demand, DERWA will provide advance notice, as defined below, of the need to stop the diversion from Central San's collection system. 4. If there are negative operational impacts caused by DERWA's diversion of wastewater that cannot be mitigated, Central San retains the right to stop the diversion of wastewater to DERWA immediately and shall notify DERWA by telephone as soon as reasonably possible that the diversion has been stopped, and within five (5) business days provide DERWA with written notice describing the nature of the negative operational impacts upon which cessation of diversion is based. Consistent with Section II of this Agreement, should Central San exercise this right to stop 5 January 17, 2019 Regular Board Meeting Agenda Packet- Page 25 of 59 Page 9 of 29 Final Draft 12/19/2018 diversions, the Parties shall meet and confer, or its joint technical committee shall meet, in order to determine what actions or changes in DERWA diversion operations are required, if any, to mitigate the negative operational impacts. 5. The diversion operation will be led and controlled by DERWA's designees. A Central San representative must be present during the opening and closing of the diversion valve/structures,unless emergency conditions or operational needs require DERWA to stop the diversion. At such time, DERWA would notify Central San within four(4)hours that the diversion has been suspended. Resuming diversions will be coordinated with all Parties, once the emergency condition or operational needs have been resolved. B.Notification and Reporting 1. DERWA shall provide Central San forty-eight (48)hour advance notice of the start and end of the diversion"season" during the term of this Agreement. Notice shall be provided to the individual or individuals identified by Central San and in the manner agreed upon by the Parties. 2. Central San shall notify DERWA in advance of any changes in its operations that may affect the operation of the DERWA diversion or the amount of wastewater flow available for diversion. 3. Central San shall notify DERWA by telephone as soon as reasonably possible and not more than four(4) hours after the diversion has been suspended due to emergency conditions. C. Wastewater Treatment 1. DERWA will be responsible for all treatment and use or disposal of the wastewater flow it diverts from Central San's Manhole 11. 2. Central San will have no responsibility for the conveyance, treatment or use of the wastewater diverted from its Manhole 11 into the DSRSD collection system. D. Urgent or Emergency Matters 1. In the case of an urgent or emergency situation involving the Project, the Parties agree to communicate and work cooperatively in responding to prevent or mitigate the loss or impairment of life, health, property or essential public services. 2. Either Party may respond to and resolve any urgent or emergency situation that occurs with the Project. When emergency response assistance is required by either Party related to the Project, mutual assistance or aid maybe requested in accordance with any applicable mutual aid or operations agreements. 3. The Parties shall create and maintain an emergency contact list, which shall include names, roles, and emergency contact information for emergency response personnel. 6 January 17, 2019 Regular Board Meeting Agenda Packet- Page 26 of 59 Page 10 of 29 Final Draft 12/19/2018 If an urgent or emergency condition exists, the responding Party shall attempt to reach their counterpart,by telephone as soon as reasonably possible. 4. No Party to this Agreement, or a third party under contract with a Party, shall be constrained in an urgent or emergency situation from expending funds or performing work on the Project in order to prevent or mitigate the loss or impairment of life, health,property or essential public services to its customers at its individual expense and in accordance with its policies and procedures. In such an event, the Party performing, or that has authorized, the work shall notify the other Party as soon as reasonably practical. VI. GENERAL PROVISIONS A. Guiding Principles Central San's authorization to enter into this Agreement is conditioned upon the Agreement and the operations being consistent with the Guiding Principles adopted by Central San's Board on August 16, 2018, and set forth in Exhibit B and incorporated herein by this reference as if fully set forth. Each term of this Agreement shall be construed in a manner which provides consistency with the terms listed in Exhibit B. B. Termination Either Party may terminate this Agreement by delivering to the other Party a written notice of intention to terminate no later than six (6)months prior to the proposed date of termination. Notwithstanding the foregoing sentence and the provisions in this Agreement to stop diversions for operational impacts or emergencies, if during the term of the Agreement, Central San reasonably determines that the operation of the project is no longer consistent with the Guiding Principles set forth in Exhibit B, then Central San may terminate the Agreement or temporarily suspend DERWA diversion operations with no less than sixty (60) days written notice to DERWA. If diversion operations are suspended pursuant to this provision, DERWA and Central San shall meet in good faith to determine what modifications, if any, are necessary in order for operations to resume. Notwithstanding anything in this Agreement to the contrary, in the event that Central San terminates this Agreement at any time earlier than the initial term of this Agreement, Central San and DERWA shall meet in good faith to determine the amount of reimbursement to DERWA for DERWA funded costs related to material improvements benefitting Central San facilities, including but not limited to valves and data collection equipment. 7 January 17, 2019 Regular Board Meeting Agenda Packet- Page 27 of 59 Page 11 of 29 Final Draft 12/19/2018 C.Amendment No alteration, amendment, variation, or waiver of the terms of this Agreement shall be valid unless made in writing and signed by the duly authorized representative of the Parties. D.Assignment and Successors No Party will assign any right or interest in this Agreement, or any part thereof, without the express written consent of the other Party. This Agreement shall bind the successors of the Parties in the same manner as if they were expressly named. E.Dispute Resolution In the event of a dispute between the Parties over the meaning of this Agreement, the Parties will meet in good faith to attempt to resolve the matter. Should informal efforts fail to resolve a dispute, the Parties may agree to mediation or arbitration, or pursue other available legal remedies in the State of California and in Contra Costa County. F. Compliance With Laws Each Party will comply with all laws, ordinances, regulations and orders applicable to work it will perform under this Agreement. If performance or contemplated performance under this Agreement results in, or is more likely than not to result in either Parties' failure to comply with laws, ordinances, regulations and orders applicable to it, either Party may terminate the Agreement without incurring any penalty to the other party. G.Indemnification To the extent permitted by State law, each Party will indemnify, defend and hold all other Parties and their directors, officers, agents, and employees safe and harmless from any and all claims, suits,judgments, damages, penalties, costs, expenses, liabilities and losses (including without limitation, sums paid in settlement of claims, actual attorneys' fees, paralegal fees, consultant fees, engineering fees, expert fees and any other professional fees) that arise from or are related in any way to each Party's, directors, officers, agents, and employees negligent acts, errors or omissions, or willful misconduct, in the performance of this Agreement. This indemnification obligation is separate and cumulative to the obligations of DERWA set forth in Exhibit B and incorporated by reference herein, and more specifically those obligations addressed in Guiding Principles I (Subsections I and 4) and 7. H.Notice All notices required to be given, or which may be given by either Party to the other, will be deemed to have been fully given and fully received: (A) immediately upon personal delivery; (B) three days after the notice is deposited in the United States mail, registered and postage prepaid and addressed to the Party for whom intended; or(C) on the same 8 January 17, 2019 Regular Board Meeting Agenda Packet- Page 28 of 59 Page 12 of 29 Final Draft 12/19/2018 day as electronic transmission is sent as long as the transmitting Party receives confirmation of the transmission's delivery. DERWA: Michael Tognolini, Authority Manager DSRSD/EBMUD Recycled Water Authority 7051 Dublin Boulevard Dublin, CA 94568 (510) 287-0125 michael.tognolini@ebmud.com Central San: Roger S. Bailey, General Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 (925) 229-7300 rbailey@centralsan.org Notification of a change in the name or information for the contact person will be in writing. L Signatures The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. This Agreement may be executed in counterpart which when taken together shall be considered one and the same agreement. Facsimile, including email, and electronic signatures shall be binding. J. Severability If any term or provision of this Agreement is deemed invalid or unenforceable by a court of competent jurisdiction or by operation of any applicable law, it will not affect the validity of any other provision, which will remain in full force and effect. K. Governing Law and Venue This Agreement is governed by and will be interpreted in accordance with the laws of the State of California. Venue shall be in the Superior Court of the County of Alameda. L. No Third Party Beneficiaries No third-party beneficiaries are intended or created by this Agreement. M. Complete Agreement This Agreement represents the entire agreement between the Parties relating to the subject matter hereof. 9 January 17, 2019 Regular Board Meeting Agenda Packet- Page 29 of 59 Page 13 of 29 Final Draft 12/19/2018 VII. ANNUAL REPORTING On an annual basis, DERWA shall prepare and provide an annual report to Central San, which provides an update on the project's compliance with the Guiding Principles, in addition to an update on DERWA's efforts to develop alternative supplies to offset its reliance on Central San's wastewater supply. The first report shall be due one year from execution of this agreement. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. DUBLIN SAN RAMON SERVICES DISTRICT—EAST BAY MUNICIPAL UTILITY DISTRICT RECYCLED WATER AUTHORITY By: Date: Michael T. Tognolini Title: Approved as to form: Authority Manager PP Douglas E. Coty DERWA Counsel CENTRAL CONTRA COSTA SANITARY DISTRICT By: Date: Roger S. Bailey Title: Approved as to form: General Manager pp Kenton L. Alm District Counsel Exhibit A—Wastewater Diversion Project Location Map Exhibit B—Central San's Guiding Principles 10 January 17, 2019 Regular Board Meeting Agenda Packet- Page 30 of 59 Final Draft 12/19/2018 EXHIBIT A WASTEWATER DIVERSION PROJECT LOCATION MAP 40 a VgR � ' mi- Z San Rlirs,❑n PS California New .� vilo 22` Diversion ti High Stnicture .�� 3 Y� School ' , �,•w�jr y 'l�-t � �� y `\ 4 J• t� as *Please note that this is a conceptual layout of the Project. A more detailed design will be completed by DERWA and agreed to by the Parties prior to construction. 11 January 17, 2019 Regular Board Meeting Agenda Packet- Page 31 of 59 Page 15 of 29 Final Draft 12/19/2018 EXHIBIT B CENTRAL SAN'S GUIDING PRINCIPLES These are the principles that were adopted by the Board on August 16, 2018, and agreed to set forth the general terms under which the District would enter into this agreement: A. Guiding Principle 1:No Adverse Financial Impact to Central San 1. The temporary wastewater diversion shall not result in any additional operational cost to Central San. Therefore, any additional operational cost shall be fully reimbursed by DERWA. 2. Revenues, including sewer service charges, Ad Valorem taxes, and capacity fees, will not be shared to the extent they are used to recover 100% of Central San's systemwide fixed cost. 3. Variable costs will be assessed and revenues collected by Central San to cover these costs may be shared. 4. Any fines resulting from sanitary sewer overflows from Central San's collection system that are found to be caused by the temporary wastewater diversion shall be reimbursed by DERWA. B. Guiding Principle 2:No Adverse Financial Impact to the Cities of Concord and Clayton Central San provides wastewater treatment by contract for the cities of Concord and Clayton. Payment for this service is based on the flow ratio into Central San's wastewater treatment plant. The City of Concord is billed(on behalf of both cities) for its flow-proportional share of the O&M and capital costs associated with Central San's wastewater treatment plant and Recycled Water Program. As a result, any diversion of wastewater from Central San's collection system,upstream of the treatment plant, would cause an increase in Concord and Clayton's proportional share, if not adjusted. Therefore, it is critical to have accurate and timely information on how much wastewater DERWA diverts from Central San, so that the City of Concord's bill can be adjusted accordingly. DERWA shall be responsible for the cost to install and regularly calibrate an appropriate flow meter to accurately measure the amount of Central San's wastewater flow diverted. C. Guiding Principle 3: Consistency with Central San's Municipal Bond Covenants Central San has recently issued and is in the process of issuing additional municipal bonds to move forward with the implementation of large capital projects that exceed Central San's available annual capital budget. As such, the underlying assumptions for this bond issuance must remain consistent, as follows: 12 January 17, 2019 Regular Board Meeting Agenda Packet- Page 32 of 59 Page 16 of 29 Final Draft 12/19/2018 1. Central San will not de-annex any portion of its service area for the sake of implementing this temporary diversion. 2. Central San will not share any revenues associated with the area served by the San Ramon Pumping Station,to the extent those revenues are used to cover Central San's systemwide fixed costs. D. Guiding Principle 4: Consistency with Proposition 218 There are concerns that the collection of revenues to cover the transportation and treatment of wastewater, from the affected customers within the diversion area, may be at risk for a Proposition 218 challenge, to the extent that those customers do not benefit from Central San's downstream conveyance and treatment facilities and their associated cost during the diversion. As a result, any Proposition 218 challenge that arises as a result of this temporary diversion will be grounds for termination of this agreement. E. Guiding Principle S: Community Acceptance Community acceptance is essential for the successful implementation of this temporary diversion project. This includes acceptance by the following entities: • Central San customers • Cities of Concord and Clayton • The adjoining San Ramon Pumping Station neighborhood • City of San Ramon • San Ramon Valley Unified School District • East Bay Regional Park District P. Guiding Principle 6: Temporary Nature of the Project Central San has entered into a Memorandum of Understanding (MOU) 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 and may call on it whenever needed. As such, this wastewater diversion is temporary in nature. G. Guiding Principle 7. Mitigation of Technical and Operational Impacts 1. There shall be no damage to Central San's infrastructure during the diversion. If damage is discovered, Central San will cease the diversion until the issue is corrected. 2. Central San must maintain a minimum amount of wastewater flow in its collection system to prevent solids from settling in the collection system. If low flows from the temporary diversion cause solids settling or odor issues, Central San will enlist its collection system crews to flush the collection system and DERWA shall be responsible for reimbursing Central San for the cost. 13 January 17, 2019 Regular Board Meeting Agenda Packet- Page 33 of 59 Page 17 of 29 Final Draft 12/19/2018 3. DERWA shall be responsible for the cost to mitigate any increased odor or any overflows from Central San's San Ramon Pumping Station and downstream collection system that result from the diversion. H.Guiding Principle 8:Benefit to Central San Customers The wastewater temporarily diverted from Central San's service area shall be available to Central San's service area as recycled water. L Guiding Principle 9: Facilitate a Sustainable Solution for the Region's Water Supply Shortage 1. 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 and to distribute such treated effluent for the benefit of its customer base and the greater region. 2. There are several Central San recycled water projects, which, collectively, may achieve this overarching goal: • Central San's Zone 1 Recycled Water Project(existing) within CCWD's service area • Concord Community Reuse Project(Central San to produce and wholesale tertiary-treated recycled water to CCWD for this development's needs) • Diablo Country Club Satellite Water Recycling Facility in EBMUD's service area • Refinery Recycled Water Exchange Project 3. The Exchange Project represents the potential for the most optimal regional solution. 14 January 17, 2019 Regular Board Meeting Agenda Packet- Page 34 of 59 AUTHORIZE A TEMPORARY WASTEWATER DIVERSION AGREEMENT WITH DERWA Melody LaBella , P. E . Resource Recovery Program Manager Board Meeting January 17 , 2019 PRESENTATION OVERVIEW • Dublin San Ramon Services District (DSRSD) - East Bay Municipal Utility District (EBMUD) Recycled Water Authority (DERWA) Wastewater Diversion Request • Proposed Temporary Wastewater Diversion • Guiding Principles for inclusion in an Agreement • Proposed Agreement • Community Meeting on December 12, 2018 • Board Action • Questions 1 ZI CENTRALSAN DERWA' s 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 Pumping 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 made this request due to the 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. ' 3 CENTRALSAN PROPOSED TEMPORARY WASTEWATER DIVERSION • Short-term diversion that is only used to shave DERWA's current peak summer recycled water demand • In 2017, the diversion would have been needed for approximately 2 weeks • In 2018, the diversion would not have been needed • Would divert - 1 .3 million gallons per day (MGD) of the -3.5 MGD average dry weather wastewater flow from the San Ramon Pumping Station 1 4 '� CENTRALSAN PROPOSED TEMPORARY WASTEWATER DIVERSION , + 'M16 41 'F{-,11 Oil P, M15 ti 22 w c s + M 11 mi, 16 k '` Mza Iwo L 5 CENTRAL BOARD ADOPTED NINE GUIDING PRINCIPLES FOR AN AGREEMENT ON AUGUST 16, 2018 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 Acceptance 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 Supply Shortage CENTRALSAN ' 6 TEMPORARY DIVERSION AGREEMENT • Initial term of three years with two one-year extensions possible (by mutual written agreement), not to exceed five years • Intended to assist with DERWA's potential supply shortage during the peak summer irrigation season • DERWA is responsible for the cost to design and construct the project • The nine Guiding Principles have been incorporated as Exhibit B • If Central San "reasonably determines" that the operation of the project is no longer consistent with the Guiding Principles, Central San may terminate the Agreement TEMPORARY DIVERSION AGREEMENT • If Central San terminates the Agreement within the initial term , the Parties will meet in good faith to determine the appropriate Central San reimbursement to DERWA, if any • Requires annual reporting by DERWA on : • The project's adherence to the Guiding Principles • DERWA's efforts to develop alternative supplies COMMUNITY MEETING HELD ON DECEMBER 12 , 2018 FROM 5-7 PM • Open House with five informational stations: 1 . Who Serves What to Whom 2. Recycled Water Keeps the San Ramon Valley Green 3. How to and Why Divert Wastewater from Central San to DERWA 4. What to Expect During and After Construction 5. What Do You Think? • Attendance • 15 agency representatives • 12 members of the public 6ML9 COMMUNITY MEETING HELD ON DECEMBER 12 , 2018 FROM 5-7 PM • Overall, there was little opposition to the project. • There were a few individuals that expressed continued concern about the San Ramon Pumping Station overflow 20 years ago and the Dougherty Valley wastewater flowing through their neighborhood. • Two of nine written comments requested an additional public meeting on the project at a better time (7-9 pm). • One written comment requested regular meetings on the San Ramon Pumping Station. • Notice of this Board meeting mailed to all attendees who provided their information at the 12/12/18 meeting. ' 10 BOARD ACTION Authorize the General Manager to Execute a Temporary Wastewater Diversion Agreement with DERWA CENTRALSAN -_ , -, ,. �A�er+9negsieeniig ugeiiee i eeuei ege e ee -.; ' 11 QUESTIONS ?m 4' y, 12 mi nmm WCENT■ .